Malta Agreement and foreign pension information 106-04022000
This document outlines specific information about the Agreement including the process of making a claim for Australian payment under the Agreement and coding of Maltese payments.
General information
Social Security Agreement between Australia and Malta
Category title |
Description |
Maltese Social Security System |
Maltese Social Security System + Read more ... In Malta, national legislation requires the compulsory payment of social security contributions, usually through deductions from paid employment. Contributions insure individuals against disability and unemployment and provides for income in the form of a pension once the person reaches retirement age. Social security covers most workers and the self-employed, including non-contributory benefits for those with low income. The legislation and collection of contributions is the responsibility of the Maltese government through taxation but administration and payment of pensions is the responsibility of the centralised government department. |
History and previous Agreements |
Widow B Pension, Wife Pension and Bereavement Allowance + Read more ... Widow B Pension and Wife Pension were sunsetted in 1995 and, along with Bereavement Allowance, ceased to be paid from 2020. See: Original Agreement - 1 July 1991 + Read more ... The original Agreement with Malta covered:
Note:
Provisions under the 1991 Agreement that continue to apply + Read more ... Portability under the 1991 Agreement was indefinite to any country. Non-contributory assistance and pensions paid by Malta were still exempt from the Australian income test for customers resident in Malta. |
Authorities, Institutions and Liaison Agencies |
Contact details for foreign pension authorities are available in CODES facility. Competent authorities + Read more ... For Australia: Department of Social Services (DSS) For Malta: Ministry for the Family and Social Solidarity (MFSS) Competent institutions + Read more ... For Australia: Services Australia Note: the Australian Taxation Office (ATO) is responsible for double coverage provisions. For Malta: Department of Social Security (DSS) Liaison agencies + Read more ... For Australia: Centrelink International Services (CIS) Note: the Australian Taxation Office (ATO) is responsible double coverage provisions. For Malta: International Relations Unit, Department of Social Security (DSS) |
Exchange of Information and liaison forms |
See Agreement Country Document Catalogue (ACDC) for samples of forms, foreign documents and translations. Exchange of information + Read more ... Under the Agreement with Malta, information held about customers may be exchanged between the liaison agencies to determine entitlement to payments under the Agreement and under either country’s domestic legislation (Article 14.1). For information on bulk data exchange, see International Data Program and indexation of foreign pensions. Australian liaison form + Read more ... The following liaison form is completed by Centrelink International Services (CIS) and sent to Malta:
For help creating and completing the form, see Agreement liaisons, NZ CICs and exchange of information. Maltese liaison forms + Read more ... The following liaison forms are completed by Malta and sent to Centrelink International Services (CIS): Liaison Form - MAL/AUS2 This form is used in all communication from Malta.
Insurance Periods – E205 Malta use the generic European form E205 to notify Maltese periods of coverage. |
Medical assessments |
Medical assessments + Read more ... Under the Administrative Arrangements, each country will arrange for an agreed report to be and sent with claims for invalidity/disability pensions. Medical examinations may also be undertaken upon request for foreign pension claim purpose. Generally, the liaison agency will contact Services Australia and request this be done. There is no provision for reimbursement of costs to either country. The customer should contact Services Australia if they receive a direct request from the liaison agency to undertake a medical examination. The customer must be advised to undertake Services Australia’s foreign pension medical assessment process. Where the customer has already undertaken a medical examination based on a direct request from the Agreement partner without consulting Services Australia, the customer should contact the liaison agency to discuss any possible reimbursement options. If a customer is claiming reimbursement of costs based on undertaking a medical examination requested by Services Australia for foreign pension purpose, consider all evidence provided. For example, if incorrect advice was provided to the customer by Services Australia that caused them to seek an independent medical examination which caused the customer to be out of pocket. See Customer compensation and Act of Grace. See Agreement Country Document Catalogue (ACDC) for samples of forms, foreign documents and translations. |
Double coverage/Taxation and Healthcare |
See general information about early release of superannuation, refunds of contributions, double coverage, taxation and health insurance. Double coverage/certificates of coverage + Read more ... The Agreement with Malta does not include double coverage provisions. Any enquiries about double coverage or certificates of coverage should be directed to the Australian Taxation Office (ATO) website. Taxation + Read more ... Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:
See general information on taxation, including issuing Australian payment summaries. Tax treaty Australia has a double tax agreement with Malta which avoids the need for the customer to pay tax in both countries. A person who is 'resident' in one country (according to the definition in the tax agreement) generally only pays tax on pensions in that country. Tax deductions from income by one country may be allowed as a credit against tax payable in the other country. Tax deduction Maltese pensions are not taxed. The gross rate of Maltese pension, before any deduction, is maintained. Maltese tax year Malta generally uses the calendar year (1 January - 31 December) as the tax year. Health insurance/Medicare + Read more ... Australia has a Reciprocal Health Care Agreement (RHCA) with Malta. See general information on health insurance and Medicare coverage. Any queries about:
There are no health insurance deductions from Maltese pension. |
Additional information |
Languages + Read more ... The official languages of Malta are Maltese and English. See Maltese naming conventions and pronunciation. Address and contact details + Read more ... Telephone country code is +356. Street address Title FirstName Surname [Addressee] 38 Triq-il-Merkanti [House number + street] Zebbug ZBG 2000 [Town/city + postcode] Gozo [Island, if not main island of Malta] MALTA Post Office Box address Title FirstName Surname [Addressee] Kaxxa Postali 85 [Post Office Box + number] Floriana FRN 1131 [Town/city + postcode] MALTA Note: the postal code is 7 alphanumeric characters (three letters, representing the locality and four numbers). One space between letters and numbers. For example, ZTN 1073 Same-sex relationships + Read more ... Same-sex marriage has been legal since 1 September 2017. |
Australian payments
Rules for Australian payments
Category table |
Description |
Australian payments |
Payments covered under the Agreement + Read more ... For Australia, the Agreement with Malta (Article 2.1) covers:
Notes:
|
Australian claim forms and processes |
See Agreement Country Document Catalogue (ACDC) for samples of forms, foreign documents and translations. In Australia + Read more ... Claims for Australian payments under International Agreements use the same methods and processes as domestic claims. In Malta + Read more ... Forms to claim an Australian payment in Malta can be obtained by:
Australian forms needed The customer is to complete and provide the following: All claims:
DSP only:
Note: Malta arranges for the AUS175 to be completed on a case-by-case basis. Forms can be lodged at any Maltese Social Security office. Under Section 4 of the Administrative Arrangements, the Maltese liaison agency will:
|
Lodgement rules and start day |
All claims for Australian payments under International Agreements are assessed by Centrelink International Services (CIS). Residence rules for claims + Read more ... If a person is not an Australian resident and in Australia on the date the claim is made, they may use the Agreement to meet the residence rules for claims if, on that date, they are:
Claim lodgement + Read more ... Claims for Australian payment under the Maltese Agreement may be lodged in certain other Australian Agreement countries. See the Claim lodgement matrix. Accepting other Agreement claims Malta will accept claims for Australian benefits under other Australian social security Agreements. Claim lodgement consideration The customer must also satisfy any other rules under the other Agreement and social security law provisions, including portability. For example, DSP can be claimed in a third country but has an ongoing residence requirement. Therefore, if the claimant is:
Date the claim is ‘made’ and start day + Read more ... The normal rules for working out the start day a claim is ‘made’ and the start day apply to a claim under the Agreement with Malta. However, the Agreement also allows:
For coding help, see: |
Qualification/Totalisation |
Totalisation of Qualifying Periods + Read more ... The Agreement allows:
Note:
See Resources in International Social Security Agreements for examples of totalisation. Maltese periods of coverage + Read more ... Maltese periods of coverage:
Minimum Working Life Residence (WLR) to totalise + Read more ... To be able to use the totalisation provisions, a person who is not an Australian resident at the date of lodgement must have at least 12 months Australian Working Life Residence (WLR) in Australia of which 6 months must be continuous (Article 7.4(a)). Note: unlike WLR for rate, this period cannot be rounded. No minimum WLR is required if the person is an Australian resident at the date of lodgement (Article 7.4(b)). Ongoing residence requirements + Read more ... The Agreement allows the ongoing residence requirement for DSP and PPS to be met by customers who reside in Malta (Article 13). |
Rate calculation |
The rate of payment may be affected by the Agreement with New Zealand. Outside Australia + Read more ... For customers outside Australia, the Agreement with Malta (Article 8.1) refers to the overall rate calculation contained in section 12(1) of the Social Security (International Agreements) Act 1999. This means customers paid under the Maltese Agreement have:
Note:
Non-proportional rate extension Customers paid under the Agreement and temporarily outside Australia, cannot have their non-proportional portability rate extended if they are unable to return to Australia. Returns to Australia The proportional rate continues to apply for the first 26 weeks of a temporary return to Australia (Article 8.3).
Inside Australia + Read more ... Customers in Australia under the Agreement are generally paid a direct deduction rate (Article 8.5). The Agreement does not include a comparison rate in Australia. Departures from Australia The inside Australia rate continues to be paid for the first 26 weeks of a temporary departure from Australia (Article 8.7). |
Portability |
Portability + Read more ... Payments under the Agreement Under the Agreement, provided the customer remains qualified, Australian payments are payable indefinitely in both countries, that is, for temporary or permanent absences (Article 13.1). Third country portability under the Agreement Portability to third countries for a customer paid under the Agreement is the same as for an autonomous customer leaving Australia (Article 13.2). See Portability of payments. |
Transfers to/from Agreement |
Transfers to the Maltese Agreement + Read more ... If necessary, a customer who receives an autonomous payment that stops being payable due to portability reasons can transfer to the Agreement to continue payment if:
If transferred to the Agreement, all Agreement rules apply to the customer, including portability and rate of payment. Transfers to autonomous + Read more ... A person who has sufficient Australian qualifying residence (or an exemption) can transfer from the Agreement to autonomous only if they are an Australian resident and in Australia. On return to Australia, system processing will automatically transfer to from the Agreement to autonomous if the person is an Australian resident who has only used the Agreement to extend their portability while outside Australia. Former resident provisions may affect customers who transfer to autonomous if they leave Australia again within 2 years of becoming an Australian resident. |
Paying customers in Malta |
Australian payments to overseas bank account Read more ... Australian payments may be issued to customers outside of Australia. If the customer intends to be outside of Australia:
See Delivery of payments to Centrelink customers outside Australia. |
Maltese payments
Rules for Maltese payments
Category title |
Description |
Maltese payments |
Payments covered under the Agreement + Read more ... For Malta, the Agreement covers the Maltese social security system for particular payments. Main payments Contributory pensions:
Note: Retirement pensions may be 'Two-Thirds' (contributions after 1979) or increased, decreased or national minimum (contributions prior to 1979). Non-contributory assistance and pensions: + Read more ... Non-contributory payments are not paid outside Malta. They should be reviewed if necessary.
Other known payments + Read more ... The following known payments are paid by the Maltese authorities but are not covered under the Agreement:
For help with:
|
Comparable Foreign Payment (CFP) |
Requirement to claim CFP + Read more ... The requirement to claim Maltese pensions applies to Maltese AGE and INV.
Eligibility for Maltese payments + Read more ... Conversion case A customer receiving a Maltese INV pension may be entitled to transfer to a Maltese early AGE pension - similar to our Transfer to Age. Malta calls this a ‘Conversion case’. To facilitate this, the Maltese authority may request a Maltese AGE claim to be sent to the customer. A voluntary claim for Maltese AGE pension should be issued to the customer when one of these requests is received. See Assisting customers to claim a foreign pension. Eligibility and coding of foreign pensions tab contains detailed information on Maltese payments that are subject to CFP legislation. |
Maltese claim forms and processes |
See Agreement Country Document Catalogue (ACDC) for samples of forms, foreign documents and translations. In Australia + Read more ... Claim packs are available for AGE, INV and SUR. Claim packs are issued through the Foreign Pension System (FPS). See Assisting customers to claim a foreign pension. Specific requirements for Maltese claims The customer is to complete and provide the following: AGE only:
INV only:
SUR only:
Requests for additional information If information provided with the claim for Maltese pension is incomplete, Malta will send requests for information in Maltese direct to customers. Receipt of foreign pension claim by Services Australia + Read more ... Under the Administrative Arrangements, Maltese forms can be lodged in Australia at any service centre. See Processing a foreign pension claim.
Centrelink International Services (CIS) only: CIS will complete the following or arrange for the following to be completed as necessary and attach the documents to the foreign pension claim to send to the Agreement country. See Agreement Liaison Detail (ALD) for method of transmission. All claims:
For help creating and completing the form, see Agreement liaisons, NZ CICs and exchange of information. INV only:
In Malta + Read more ... Enquiries about claims for Maltese payments in Malta or a third country should be directed to the Maltese social security authorities. |
Payment method and Indexation (CPI) |
Payment method + Read more ... Maltese payments can be paid by direct deposit in Australia. Any queries about the non-payment of Maltese pension should be directed to the Maltese pension authorities. Frequency + Read more ... Agreement pensions are paid as 13 payments per year but are usually specified in weekly amounts on notices. A ‘special bonus’ and ‘cost of living bonus’ is added to the weekly amount and there are also two bonus payments at a set rate paid in June and December. Amounts are coded as Frequency: ‘ANN’ using the following calculation:
Note:
Maltese non-contributory assistance and pension payments are paid in varying frequencies: weekly (1 WE), 4-weekly (4 WE) or annually (ANN). Other benefits or private pensions are normally paid monthly or annually. Currency + Read more ... Maltese pensions must be recorded in the source currency Euro (EUR). Official statements provide the foreign currency amounts. Amounts recorded in source currency on the Foreign Pensions Details (FPD) screen must not be changed to the Australian dollar amount. Note: payments into Australia are made in Australian dollars. Indexation (CPI) + Read more ... Maltese payments are generally increased for Consumer Price Index (CPI, or cost of living) in January each year. For more information on bulk exchanges and auto adjusted CPI increases, see International Data Exchange Program and auto-indexation of foreign pensions. |
Assessment |
The assessment and coding of Maltese pensions may be affected by the Agreement with New Zealand. Agreement pensions (AGE/INV/SUR) are generally: + Read more ...
See Rate Calculation for when a direct deduction or proportional rate is applied. Note: each member of a couple is deemed to receive half of the total amount received by the couple (Article 8.6). The following known payments are assessed as ordinary income: + Read more ...
A beneficiary is entitled to a maximum of 156 days of Unemployment benefit. This payment is different to Unemployment Assistance (Assistenza għal Diżimpjieg).
This payment is different to Sickness Assistance (Assistenza għal Mard).
Treasury pension (Pensjonijiet tat-Teżor) more commonly known as a Service pension (Il-Pensjoni tas-Servizz), is a pension paid to ex-civil servants, ex-police officers and ex-Armed Forces officers. In addition, there are other benefits in this scheme that aim to help widows and orphans of ex-civil servants and also to give allowances to retired members of parliament.
British Service Pension may be paid to customers in Malta who served in the British armed forced. This payment can also be made to widows of ex-servicemen. British Service Pension is paid in Euro currency to customers residing in Malta and administered by the British Pensions Office in Malta. CPI is applied every April to British Service Pension paid to customers in Malta in line with other UK payments. See International Data Exchange Program and auto indexation of foreign pensions. The following payments are exempt: + Read more ... Non-contributory assistance and pension payments The following payments are exempt income for both customers paid under the Agreement and autonomous, who are resident in Malta (Article 8.4). They are paid 4 weeks in advance unless another frequency is noted. They are not generally payable to people outside of Malta, but would be assessed the same as an agreement pension if the person is outside of Malta:
May be awarded to a person who reaches 60 years of age; does not have enough paid or credited Maltese contributions to be eligible for a contributory Retirement pension and satisfies the means test.
May be awarded to a person with a disability who is 16 years of age and over.
May be awarded to a person with a disability who is 16 years of age and over and can be engaged in a gainful occupation.
Awarded to a person whose treatments incur an additional expenditure. This payment differs to Sickness benefit (Benefiċċju għal Mard).
May be awarded to a person who is 14 years of age and over who is completely or partially visually impaired
Awarded to a person who suffers from the disease, or who has a family member who is living within the household, and who suffers from one of these diseases
Awarded to a parent who is not employed for care of a child(ren) in receipt of an Increased Severe Disability Assistance. Paid 4 times a year.
May be awarded to a person who is over eighteen (18) years of age and is taking care of a relative, with low dependency, on a full-time basis living within the same household.
May be awarded to a person who is responsible for the household who may:
Awarded to a person responsible for household and other eligible members forming part of the household, who is unemployed. Paid weekly. This payment differs to Unemployment benefit (Benefiċċju għal Diżimpjieg).
May be awarded to a person who is following a drug or alcohol rehabilitation therapeutic program. Paid weekly.
May be awarded to a single unmarried parent who is not in paid employment.
Awarded to a mother who has the care and custody of a child who is less than 40 weeks of age and requires weaning or complementary feeding else to a mother who cannot breastfeed for medical reasons.
Up until 2019, customers aged between 62 and 74 and who did not have enough Social Security Contributions to qualify for a Contributory Pension were eligible for this payment. From 2020, the bonus continues to be paid to those customers ineligible for a minimum pension beyond 74 years of age. Therefore, the payment of this bonus does not stop at 74 years of age. Customers automatically qualify for this payment at grant. Paid annually.
Payment for dependent children is exempt from the income test if the child meets the Australian definition of a dependent child (section 8(8)(j) Social Security Act 1991).See Payment for dependent children. Otherwise, it is assessed as ordinary income. |
Arrears debts and embargo |
The assessment and coding of Maltese pensions may be affected by the Agreement with New Zealand. Arrears debts and embargo + Read more ... The Agreement includes embargo provisions (Article 12.4) but they are not used. Arrears debts for customers and partners are raised under s1228A Social Security Act 1991 and recovered by normal methods under the Act. See Comparable foreign payment lump sum arrears debts. When an arrears period is not provided, the arrears period end date may be assumed to be the end of the month before the date on the notice or liaison form. A contravention debt may also occur if the customer does not advise of the grant of their Maltese payment within their notification period. See Foreign pension coding. |
Life certificates, notices and documents |
See Agreement Country Document Catalogue (ACDC) for samples of forms, foreign documents and translations. Life certificates + Read more ... Life certificates are not used by Malta. Notices and documents + Read more ... Customers in Australia are sent notices at grant and will receive an annual statement in between January and March each year. |
Eligibility and coding of foreign pensions
Eligibility Criteria for Retirement Pension (AGE)
Table 1
Eligibility Criteria for Invalidity Pension (INV)
Table 2
Eligibility Criteria for Widows Pensions (SUR)
Table 3
Agreement pension coding
Table 4: This table contains coding of Maltese Agreement pensions on the Foreign Pensions Details (FPD) screen.
Field |
Coding required |
Country |
MT |
Type |
For:
Do not code exempt Child Benefits. |
Description 1 |
Only code this field if Ref 1 is blank. If necessary, code the appropriate Maltese pension name from the statement provided. |
Ref 1 |
Code the 9 alphanumeric Maltese Identity Card number. Format: nnnnnnnnA |
Description 2 |
Leave blank. |
Ref 2 |
Code the 8-digit Maltese pension number. Format: nn/nnnnnn |
Currency |
Euro (EUR) Note: for arrears period coding, see Arrears debts and embargo. |
Frequency |
ANN |
Basic Amount |
Code the gross amount as shown on the Notice of Grant or official benefit statement. For non-standard frequencies calculations, see Frequency. |
Social/Welfare Amount |
Code the non-contributory assistance and pension amounts, if paid with the main payment. Otherwise, leave blank. |
Other payment coding
Table 5: This table contains coding details of other Maltese payments on the Foreign Pensions Details (FPD) screen.
Note: OPN = Other Social Security when using the Foreign Pension Script.
Category title |
Description |
Country |
MT |
Type |
For Treasury pension, British Service pension, or any other assessable payment, code: OPN |
Description 1 |
Only code this field if Ref 1 is blank. If necessary, code the appropriate Maltese pension name from the statement provided. |
Ref 1 |
Code the 9 alphanumeric Maltese Identity Card Number. Format: nnnnnnnnA |
Description 2 |
Leave blank (to be used for DEX purpose). |
Ref 2 |
Code the 8-digit Maltese pension number. Format: nn/nnnnnn |
Currency |
Euro (EUR) Note: for arrears period coding, see Arrears debts and embargo |
Frequency |
ANN |
Basic Amount |
Code the gross amount as shown on the Notice of Grant or official pension statement. |
Social/Welfare Amt |
Leave blank |