Eligibility and coding of foreign pensions from non-agreement countries 106-08050000

The requirement to claim a foreign pension from the UK applies to UK State Retirement Pension.

Qualifying age: Variable

Note: a foreign pension age calculator is available through the International Homepage, see Resources for a link.

Minimum qualifying period: 10 years contributions (National Insurance – NI).

Note: different rules may apply to:

• males born before 6 April 1951, or
• females born before 6 April 1953

Customers will need to contact the UK foreign pension authorities for details.

UK pensions are generally paid in Australia by direct deposit.

Pensions are generally paid 4 weekly (13 times a year) but notices usually provide a weekly rate and so should be coded in that frequency unless otherwise indicated.

Notices are only issued at grant, as pensions are not indexed in Australia.

UK pensions may be indexed for CPI in April each year.

Note: UK only apply indexation of UK pensions in certain countries.

Some UK payments may be updated automatically, see International Data Exchange Program and auto-indexation of foreign pensions.

A customer in receipt of a UK pension visiting the UK can receive an increase to their UK pension while they are present in the UK.

On return to Australia, their UK pension reduces back to the normal rate they were paid before they left Australia.

If a customer contacts about the rate we are maintaining, code the lower rate the customer received from date of return to Australia and ask the customer to provide evidence from the UK authorities showing the rate they were paid while in the UK.

For general information on helping customers with life certificates, see Assisting customers to claim a foreign pension.

• UK life certificates are issued annually
• Services Australia can certify UK life certificates

Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:

• In the other country - the tax/health authority in the other country directly
• In Australia - the Australian Taxation Office (ATO) website

For general information on taxation, including issuing Australian Payment Summaries, see the Taxation information in International Social Security Agreements.

Australia has a double tax agreement with the UK. Pensions are taxable in the country in which the pensioner is resident. Tax deductions from pensions by one country are allowed as a credit against tax payable for residents of the other country.

UK pensions are not generally taxed at source.

The gross rate of UK pensions (before deductions) is maintained.

UK uses the period 6 Apr – 5 Apr as the tax year.

Assessment: Ordinary income

Note: exempt income before 1 March 2001 where paid under the former UK Agreement to a person who was residing in UK.

Coding: On the Foreign Pension Details (FPD) screen

Country field: code GB.

Type field: code AGE. Note: press Enter to display all country specific fields.

Description 1 field: leave blank.

Ref 1 field: code the 8 character National Insurance Number (NIN). Format: aannnnnn Note: the last alpha is not coded, e.g. YP151515B is coded as YP151515.

Description 2 field: leave blank.

Ref 2 field: leave blank.

Currency field: Pound Sterling (GBP).

Frequency field: 1WE.

Basic Amount field: code gross weekly amount as indicated on Notice of Grant or official pension statement.

Assessment: As for UK State Retirement Pension (see above)

Coding: Coded as part of UK State Retirement Pension (see above).

Add to Basic Amount: or code as separate GB AGE.

Assessment: Ordinary income

Note: exempt income before 1 March 2001 where paid under the former UK Agreement to a person who was residing in UK.

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘INV’, code in Basic Amount: field in frequency as indicated on notice.

Note: where exempt (see above), code as Type: ‘CAR’ with ‘Article 18INV’ in the Description: field.

This payment has replaced the following benefits: Widow’s Pension, Widowed Parent’s Allowance, Bereavement Allowance and Bereavement Payment.

It is paid as a lump sum. In some cases a person may also receive a monthly payment for a set period (from a few months up to 18 months). The customer will need to advise when their monthly payment ceases.

Assessment: Policy advice is that Bereavement Support Payment may be exempt from the income test if payable to the person who incurred expenses associated with the bereavement. Otherwise the lump sum is assessable over 12 months from date of receipt (s1073 Social Security Act 1991) and the monthly payment is ordinary income.

Coding:

• If exempt, not coded but details recorded in a DOC
• If the lump sum is assessable income: see Treatment of lump sums
• If the monthly payment is assessable, on the Foreign Pension Details (FPD) screen:
• Type: OPN
• Basic Amount: as indicated on the notice

Note: paid as savings credit or guarantee credit.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘GPC’, code in Basic Amount: field (savings credit) or Social/Welfare Amt: field (guarantee credit) and ensure Desc1: field indicates the payment name.

Assessment: Exempt income (policy and s8(ze) Social Security Act 1991).

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘CAR’, code in Basic Amount: field and ensure Desc1: field indicates the payment name.

Assessment: Policy advice is that these payments are not assessable.

Coding: Not coded. Record details in a DOC.

Note: some War Pension recipients may also receive exempt allowances, for example, Attendance Allowance etc. (see above).

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘WAR’, code in Basic Amount: field and ensure Desc1: field indicates the payment name.

Assessment: On 20 March 2024, the Minister for Social Services approved the personal care support schemes from the United Kingdom and Scotland under section 35A of the Social Security Act. As approved schemes, they are exempt from the social security income test under subsection 8(8)(zi) of the Act.

Payments exempt under this section include:

• Social Security (Personal Care Support) (United Kingdom Government Personal Independence Payment) Determination 2013
• Social Security (Personal Care Support - Attendance Allowance and Disability Living Allowance - United Kingdome) Determination 2018.
• Social Security (Adult Disability Payment) (Scottish Government Personal Care Support)
• Social Security (Child Disability Payment) (Scottish Government Personal Care Support)

Coding: Not coded. Record details on a DOC.

For assistance with coding other government payments, see Foreign pension coding.

For assistance with coding other private payments (for example, occupation-based pensions such as Teachers, Police, NHS, Civil Service, or pensions for local council or government employees), see Foreign income and assets.

The requirement to claim a foreign pension from Bosnia-Herzegovina applies to Bosnian Age Pension (Starosna penzija).

Qualifying age: 65 for males and females.

Minimum qualifying period: 180 months contributions.

Bosnian pensions are generally paid monthly in Australia by cheque.

Notices are issued at grant and on indexation.

Bosnian pensions may be indexed for CPI in January and July each year.

For general information on helping customers with life certificates, see Assisting customers to maintain an existing foreign pension.

• Bosnian life certificates (Potvrda o životu) are required annually but are not issued to customers
• Services Australia can certify Bosnian life certificates

Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:

• In the other country - the tax/health authority in the other country directly
• In Australia - the Australian Taxation Office (ATO) website

For general information on taxation, including issuing Australian Payment Summaries, see the Taxation information in International Social Security Agreements.

There is no tax treaty with Bosnia-Herzegovina.

Bosnian pensions are not generally taxed at source.

The gross rate of Bosnian pensions (before deductions) is maintained.

Bosnia-Herzegovina uses the calendar year (1 Jan - 31 Dec) as the tax year.

• Federacija - Sarajevo, Mostar, Tusla, Zenica
• Republika SRPSKA - Banja Luka, Pale, Bijeljina, Brcko

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘AGE’, code in Basic Amount: field with Freq: ‘MTH’. Ensure Desc1: field indicates the payment name.

Federacija pensions must be adjusted before coding.

Refer to the Bosnia and Herzegovina Federacija Multiplier Rate Calculator for calculations on the Residence and International program intranet page. The Resources page contains a link.

Republika Srpska pension rates are found on the CFP Rate Calculator.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘INV’, code in Basic Amount: field with Freq: as indicated on notice.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘SUR’, code in Basic Amount: field with Freq: as indicated on notice.

For assistance with coding other government payments, see Foreign pension coding.

For assistance with coding other private payments, see Foreign income and assets.

The requirement to claim a foreign pension from China applies to Chinese Old Age Pension (养老金).

Qualifying age:

• Male - 60 years
• Female - 55 years
• X - will be screened at the male qualifying age. If requested, a voluntary claim can be issued before the customer reaches this age

Minimum qualifying period: 180 months contributions

Chinese pensions are generally paid monthly into a Chinese bank account only.

Notices are issued at grant and on indexation.

Chinese pensions may be indexed for CPI in January each year.

For general information on helping customers with life certificates, see Assisting customers to maintain an existing foreign pension.

• Life certificates are issued annually
• Services Australia cannot certify Chinese life certificates. Refer customers to nearest Chinese Embassy or Consulate in Australia

Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:

• In the other country - the tax/health authority in the other country directly
• In Australia - the Australian Taxation Office (ATO) website

For general information on taxation, including issuing Australian Payment Summaries, see the Taxation information in International Social Security Agreements.

Australia has a double tax agreement with China. Pensions are taxable in the country in which the pensioner is resident. Tax deductions from pensions by one country are allowed as a credit against tax payable for residents of the other country.

Chinese pensions are not generally taxed at source.

The gross rate of Chinese pensions (before deductions) is maintained.

China uses the calendar year (1 Jan - 31 Dec) as the tax year.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘AGE’, code in Basic Amount: field with Freq: ‘MTH’. Ensure Desc1: field indicates the payment name.

For assistance with coding other government payments, see Foreign pension coding.

For assistance with coding other private payments, see Foreign income and assets.

The requirement to claim a foreign pension from France applies to French Retirement Pension (Pension de retraite) from the general scheme (régime general).

Note: customers may also qualify for a retirement pension from the complementary scheme (Régime complémentaire). Customers are not required to claim complementary pensions. See Any other income from France below.

Qualifying age: 65 if born before July 1951.

Qualifying age is increasing to 67. A foreign pension age calculator is available through the International Homepage, see Resources page for a link.

Minimum qualifying period: One ‘quarter’ (3 months) contributions.

French pensions are generally paid in Australia by direct deposit.

Pensions are generally paid monthly but outside of France may also be paid quarterly or annually. Notices should be checked for frequency of payment.

Notices are issued at grant and in January each year.

French pensions from the general scheme may be indexed for CPI in October each year. Complementary pensions may be indexed in November each year.

For general information on helping customers with life certificates, see Assisting customers to maintain an existing foreign pension.

• French life certificates (ATTESTATION D'EXISTENCE) are issued annually
• Services Australia can certify French life certificates

Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:

• In the other country - the tax/health authority in the other country directly
• In Australia - the Australian Taxation Office (ATO) website

For general information on taxation, including issuing Australian Payment Summaries, see the Taxation information in International Social Security Agreements.

Australia has a double tax agreement with France. Pensions are taxable in the country in which the pensioner is resident. Tax deductions from pensions by one country are allowed as a credit against tax payable for residents of the other country.

French pensions are not generally taxed at source.

The gross rate of French pensions (before deductions) is maintained.

France uses the calendar year (1 Jan – 31 Dec) as the tax year.

May be identified by Basic Pension (Retraite de base) from funds such as CNAV, CARSAT, MSA, RSI, Banque de France, CNAVPL, ENIM, CNRACL.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘AGE’, code in Basic Amount: field with Freq: as indicated on notice.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘INV’, code in Basic Amount: field with Freq: as indicated on notice.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘SUR’, code in Basic Amount: field with Freq: as indicated on notice.

Complementary Pension (Régime complémentaire)

May be identified by Complementary Pension (Retraite Complémentaire) from funds such as ARRCO, AGIRC, ORGANIC, IRCANTEC, CRPN, IRCEC.

Note: complementary Pension may also be paid by the individual fund such as CNAV, MSA, RSI.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘OPN’, code in Basic Amount: field with Freq: as indicated on notice.

For assistance with coding other government payments, see Foreign pension coding.

Retirement Savings (Épargne retraite)

May be identified by paying fund, for example, PERE, PERCO, PERP, PRÉFON, ’LOIS MADELIN’.

Retirement savings are private pensions, see Foreign income and assets.

For assistance with coding other private payments, see Foreign income and assets.

The requirement to claim a foreign pension from the Philippines applies to:

• Social Security System (SSS) Philippines Retirement Pension
• Government Service Insurance System (GSIS) Old Age Pension

Note: if customer does not indicate which PH fund (GSIS or SSS), copy the RQI and send to both funds.

If a response has been received from one fund that the customer is not entitled, code Foreign Claim Summary (FGS) screen with FIN-NOM status to avoid suspension action. If advice from the second fund is later received that the customer is entitled, delete the FIN-NOM status and replace with the new grant information.

Qualifying age: 60.

Minimum qualifying period:

• SSS - 10 years (120 months) contributions
• GSIS - 15 years (180 months) contributions

Philippines pensions are generally paid into a Philippines bank account. Customers can arrange to transfer money to an Australian account.

Pensions are generally paid monthly but receive an extra payment in December. Monthly amounts should be x13 and coded as Freq: ‘ANN’.

Notices are issued at grant and when pensions are indexed.

Philippines pensions are generally indexed for CPI in January each year.

For general information on helping customers with life certificates, see Assisting customers to maintain an existing foreign pension.

• Philippines life certificates are issued annually
• Services Australia can certify Philippines life certificates

Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:

• In the other country - the tax/health authority in the other country directly
• In Australia - the Australian Taxation Office (ATO) website

For general information on taxation, including issuing Australian Payment Summaries, see the Taxation information in International Social Security Agreements.

Australia has a double tax agreement with the Philippines. Pensions are taxable in the country in which the pensioner is resident. Tax deductions from pensions by one country are allowed as a credit against tax payable for residents of the other country.

Philippines pensions are not generally taxed at source.

The gross rate of Philippines pensions (before deductions) is maintained.

The Philippines uses the calendar year (1 Jan – 31 Dec) as the tax year.

May be identified by:

• Government Service Insurance System (GSIS)
• Social Security System (SSS)

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘AGE’, code monthly amount x13 in Basic Amount: field with Freq: ‘ANN’.

Note: customers may receive a lump sum in lieu of pension or as a refund of contributions.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘INV’, code monthly amount x13 in Basic Amount: field with Freq: ‘ANN’.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘SUR’, code monthly amount x13 in Basic Amount: field with Freq: ‘ANN’.

Assessment: Policy advice is that foreign bereavement payments may be exempt from the income test if payable to the person who incurred expenses associated with the bereavement. Otherwise is assessable over 12 months from date of receipt (s1073 Social Security Act 1991.

Coding:

If exempt, not coded but details should be recorded in a DOC.

If assessable, see Treatment of lump sums.

For assistance with coding other government payments, see Foreign pension coding.

For assistance with coding other private payments, see Foreign income and assets.

The requirement to claim a foreign pension from Sweden applies to Swedish National Pension (Ålderspension).

Qualifying age: 65.

Minimum qualifying period: 36 months residence or contributions.

Swedish pensions are generally paid in Australia by direct deposit.

Pensions are generally paid monthly.

Notices are issued at grant and each year.

Swedish pensions are generally indexed for CPI in January each year.

For general information on helping customers with life certificates, see Assisting customers to maintain an existing foreign pension.

• Swedish life certificates (Levnadsintyg) are issued annually
• Services Australia can certify Swedish life certificates

Any queries about taxation of pensions or the requirement to lodge a tax return should be directed to:

• In the other country - the tax/health authority in the other country directly
• In Australia - the Australian Taxation Office (ATO) website

For general information on taxation, including issuing Australian Payment Summaries, see the Taxation information in International Social Security Agreements.

Australia has a double tax agreement with Sweden. Pensions are taxable in the country in which the pensioner is resident. Tax deductions from pensions by one country are allowed as a credit against tax payable for residents of the other country.

Note: pensions paid by local councils and to nationals of a country may still be taxable in that country.

Swedish pensions may be generally taxed at source (skatt).

The gross rate of Swedish pensions (before deductions) is maintained.

Sweden uses the calendar year (1 Jan – 31 Dec) as the tax year.

May be identified by:

• Allmänna pensionen (Pensionsmyndigheten)

Note: Swedish Private/Occupational Pensions (Tjänstepension) for example, Alecta, Länsförsäkringar, Folksam, AMF, Avanza, Danica, are private pensions, see Foreign income and assets.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘AGE’, code total amount before tax (skatt) in Basic Amount: field with Freq: as indicated on notice.

May be identified by:

• Social Insurance Agency – Försäkringskassan

Note: Swedish Private/Occupational Pensions (Tjänstepension) for example, Alecta, Länsförsäkringar, Folksam, AMF, Avanza, Danica, are private pensions, see Foreign income and assets.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘INV’, code total amount before tax (skatt) in Basic Amount: field with Freq: as indicated on notice.

Assessment: Ordinary income

Coding: On the Foreign Pension Details (FPD) screen, Type: ‘SUR’, code total amount before tax (skatt) in Basic Amount: field with Freq: as indicated on notice.

For assistance with coding other government payments, see Foreign pension coding.

For assistance with coding other private payments, see Foreign income and assets.