Generally, SSA does not pay benefits to dependents and survivors who have been outside
the United States for more than six months and who first became eligible for dependent
or survivors benefits after 1984, unless they satisfy certain U.S. residency requirements
(five-year residency rule). However, section 202(t)(11)(E) of the Act exempts citizens
or residents of a country with which the United States has a Totalization Agreement
from the five-year U.S. residency requirement, unless the Agreement provides otherwise
or includes a limitation on the exemption.
The Agreement with Australia is the first U.S. agreement that includes such a limitation.
Under the Agreement, all residents of Australia are exempt from the U.S. residency
requirements, but Australian citizens who do not reside in the United States or Australia
are only exempt if they reside in another country with which the U.S. has a Totalization
agreement.