Various amendments to Australia’s social security legislation have necessitated the revision of the original agreement signed in 1990. Following a period of negotiations, the two governments have now come up with a revised text.
Minister Dolores Cristina highlighted the fact that Australia hosts the largest number of Maltese migrant pensioners. “Some 3,000 Maltese pensioners receive their benefits in Australia and an equivalent number of Australians receive their benefits in Malta. The streamlining of this agreement will undoubtedly be a welcome development for people receiving benefits in the two countries, since it ensures a more effective system,” she said.
Mr Palk said the original agreement, which began on 1 July 1991, was one of Australia’s first shared responsibility agreements, in recognition of the high percentage of Maltese who came to Australia after World War II. He added: “Australia currently pays annual pensions to the value of Lm5 million in Malta. Over 80 per cent of these pensions are paid under the Social Security Agreement, with Australia providing 3,064 social security pensions in Malta with an annual value of more than Lm3.3 million.”
The new agreement applies to anyone who is or has been an Australian resident, or who is or has been insured in Malta. It ensures that periods of residence in Australia and periods of insurance in Malta are considered together so as to enhance entitlement conditions, thereby allowing for the payment of pro-rata benefits. Since the original agreement was signed, the Australian government has introduced reforms to invalidity/disability pensions that allow only people who have been assessed as being severely disabled to be paid indefinitely outside Australia. Current recipients of a disability support pension will, however, continue to receive the payment, whether they are severely disabled or not, as they are “protected” by the transitional provisions of the revised agreement. The revised agreement limits the coverage of Australian disability support pensions to people who are assessed as being severely disabled. Under the existing agreement, people who are not severely disabled can be paid a disability support pension in Malta.
The revised agreement also contains provisions that maintain the rate of Australian pension paid to people when they visit or depart Australia temporarily for up to 26 weeks. The rate will no longer change immediately a person visits or departs Australia, as happens under the current agreement, but instead will remain consistent for the first 26 weeks of any temporary visit or departure.
This change will simplify administrative processes and will also reduce the number of overpayments incurred by pensioners who move between the two countries temporarily. The change is in line with the approach taken in all Australia’s new agreements.
Terminology used in the agreement has been updated by both Malta and Australia (as an example, the names of payments have been updated and an Australian invalidity pension is now known as a disability support pension). In addition, some of the agreement’s articles have been rewritten using simpler language.
The current agreement with Malta was signed on 15 August 1990 and began on 1 July 1991. With regard to Australian benefits, the new agreement covers age pensions, disability support pensions for the severely disabled and pensions payable to widows. The agreement also applies to wives of men receiving an age pension, or disability support pension for the severely disabled, from Australia.
Regarding Maltese benefits, the new agreement covers contributory pensions in respect of retirement, invalidity and widowhood and non-contributory assistance and pension. Apart from the provisions of the new agreement, during this year the Maltese Department of Social Security embarked on a direct credit payment system of Maltese benefits payable in Australia. As a result of this new computerised system, Maltese migrants in Australia are now receiving their Maltese benefit directly into their accounts in Australia.
The new system allows the Department of Social Security in Malta to implement pension revisions electronically, thus providing a more efficient and better service to Maltese migrants.