The Social Security Agreement between the United States and Australia

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  eliminates dual Social Security coverage and taxation of the same work, and

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  may permit workers (and their family members) to qualify for partial U.S. or Australian benefits, even though they do not meet the normal insured status requirements (for U.S. benefits) or Australian residence requirements (for Australian benefits).

The Agreement with Australia became effective October 1, 2002.

We can use periods of U.S. and Australian coverage a worker earned prior to October 1, 2002, to establish entitlement to U.S. or Australian Totalization benefits. However, the earliest possible month of entitlement to such benefits is October 2002.

This subchapter provides:

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  a brief overview of the Australian system;

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  an explanation of the provisions of the Agreement, and

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  instructions on how to take and process claims for both U.S. and Australian social security benefits filed under the Agreement.

The Australian social security system provides old-age, survivors, and disability benefits. In addition, Australian law mandates employer contributions to supplementary retirement plans under a program called Superannuation Guarantee (SG). Although the dual coverage provisions of the Agreement apply to SG, the benefit provisions do not.

Australia's social security program pays flat-rate retirement, survivors, and disability benefits to qualified individuals. Persons must meet income and assets tests to qualify. Australia generally considers the income and assets of both members of a couple who are married or in a registered or de facto relationship.

SSA cannot give official information about Australian benefits. Refer all inquiries about Australian benefits to:

Individuals who live in the United States can call Centrelink toll free at 1-866-343-3086. Centrelink can also be contacted by e-mail at international.services@centrelink.gov.au

The provisions of the Agreement that permit people to qualify for benefits based on combined U.S. and Australian coverage apply to the following types of benefits:

1. 1. 

   U.S. retirement, survivors, and disability benefits

   The Agreement applies to U.S. retirement, survivors, and disability benefits and to the corresponding U.S. tax laws for Federal Insurance Contributions Act (FICA) and Self-Employment Contributions Act (SECA). The Agreement does not apply to Medicare benefits, Supplemental Security Income (SSI), or Special Age 72 payments.

2. 2. 

   Australian Social Security retirement, survivors and disability benefits

   The Agreement applies to Australian age pension, disability support pension, widow's pension, and carer payments.

The provisions of the Agreement that eliminate dual social security coverage and taxes apply to the following:

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  U.S. Social Security taxes, FICA and SECA, including the Medicare portion of those taxes; and

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  Australia's Superannuation Guarantee employer contributions.

RS 02002.001 through RS 02002.045 Agreement provisions for the elimination of dual coverage and taxation

Under the Agreement, if a number holder (NH) has at least six U.S. quarters of coverage (QCs) but not enough to receive regular U.S. benefits, the Social Security Administration (SSA) can count the NH’s years of "working life residence" in Australia to permit the NH (or any dependents or survivors) to qualify for U.S. Totalization benefits. If the NH has enough QCs under the U.S. system to receive regular U.S. benefits, SSA cannot count Australian years of "working life residence". Under the U.S. – Australian Agreement, the term "working life residence" means periods of residence in Australia between age 16 and normal retirement age during which the worker was employed or self-employed, see GN 01743.205A.2.

1. 1. 

   Field office (FO) responsibilities for processing claims under the Agreement

   When a NH does not have enough U.S. coverage to meet fully insured status, but the NH has at least six QCs, FO technicians must take an initial claim to process the insured status denial. The initial denial automatically generates a notice to inform the applicant that they do not meet the insured status requirement based on U.S. coverage alone, and that we will request the applicant's Australian coverage record.

   For more information about processing Totalization insured status notices for claims for U.S. benefits, see GN 01702.315 through GN 01702.325.

2. 2. 

   Division of International Operations (DIO) responsibilities for claims processing under the Agreement

   DIO requests and converts Australian periods of coverage on the Australian coverage record to U.S. QCs before adjudicating the claim.

SSA credits one U.S. QC for every three months or remaining fraction of Australian working life residence in a calendar year. However, we give no credit for:

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  Australian coverage credited for periods prior to 1937;

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  any month in a calendar quarter that is already credited as a U.S. QC; or

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  more than four QCs for any calendar year.

When SSA establishes U.S. insured status based on combined U.S. and Australian coverage, SSA computes the amount of the U.S. Totalization benefit using the computation method described in GN 01701.200.

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  GN 01702.315 Processing Totalization Insured-Status Notices in Claims for U.S. Benefits

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  GN 01702.320 Routing of Claims for Foreign Benefits

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  GN 01702.325 Summary of Field Office Development and Processing of U.S. Totalization Claims and Foreign Claims (Regular and Totalization)

To qualify for Australian benefits in the absence of an agreement, applicants must normally be residents of and physically present in Australia at the time the applicant files the application. In addition, applicants must meet certain length-of-residence requirements.

1. 1. 

   Residence requirements

   Applicants who are residents of and physically present in the United States at the time of applying for Australian benefits can qualify for benefits even though they are not residents of and physically present in Australia at the time of application.  In addition, Australia will count any U.S. quarters of coverage (QCs) as 3 months of Australian residence when determining if the applicant meets the length-of-residence requirements.  However, applicants who are not current residents of Australia must have resided in Australia in the past for a minimum of 12 months, of which at least 6 months were continuous, before Australia will count U.S. QCs when determining eligibility for an Australian benefit.

2. 2. 

   Carer payment

   Australia will pay a carer payment to residents of the United States on the same basis as residents of Australia provided that the caregiver is recognized under Australian law as the partner of an Australian beneficiary.

3. 3. 

   Income test

   Australia will not count any Supplemental Security Income benefits or any State or local government assistance payments when counting a person's income to determine the benefit amount. However, Australia will count other income and resources, including Title II benefits, in accordance with Australian law and the Totalization agreement with Australia.

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  GN 01743.020, Australian Social Security Benefits - Eligibility Requirements

Section 202(t)(1) of the Social Security Act provides that the Social Security Administration (SSA) will suspend the benefits of certain non-U.S. citizen beneficiaries once they have been outside the U.S. for more than six month, unless they meet an exception.

One such exception is in section 233(c)(2) of the Act. As explained in GN 01701.150A.1., certain non-U.S. citizen beneficiaries who would otherwise be subject to suspension under section 202(t)(1) are exempt from suspension if they reside in a country with which the United States has a Totalization Agreement. This exemption applies to residents of Australia who receive regular retirement, survivors or disability insurance benefits as well as those who receive Totalization benefits.

If a claimant who does not meet another exception to the ANP alleges residence in Australia, develop residence status according to the instructions in GN 01702.230 to verify that the exemption provided by the Agreement applies.

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.

Use the following chart to determine if SSA should develop the residency or citizenship of a non-U.S. citizen dependent or survivor who does not meet the five-year residency requirement.

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  GN 01701.150 Alien Nonpayment Exemptions under Totalization Agreements

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  GN 01702.220 Evidence of Citizenship for Beneficiaries Living Outside the United States

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  GN 01702.230 Evidence of Residence

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  RS 02610.001 Alien Nonpayment Provisions

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  RS 02610.015 Status of Countries for Alien Nonpayment Provision (ANP) Exceptions Based on Citizenship

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  RS 02610.025 5 Year Residency Requirement for Alien Dependents/ Survivors Outside the United States (U.S.)

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  RS 02610.030 5 Year Residency Requirements for Spouses, Natural Child, Adopted Child, and a Parent

The Agreement allows a person who wishes to appeal a decision on an adjudicated claim for U.S. or Australian social security benefits to file the appeal with either country.  For instructions on filing an appeal of a decision on U.S. or Australian claims, see GN 01702.500 – GN 01702.505.

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  GN 01702.500 Filing Appeals of Decisions on U.S. or Foreign Claims

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  GN 01702.505 Representation of Applicants in Totalization Claims

Under the Agreement with Australia, SSA accepts applications for regular and Totalization benefits on behalf of Australia. SSA also provides limited assistance in obtaining the required evidence to support the applicant’s claim.

Applicants do not need to resubmit the evidence previously submitted and verified to establish factors of entitlement for U.S. Social Security benefits. The evidence previously submitted for entitlement to U.S. Social Security benefits is sufficient to establish the same factors of entitlement to Australian benefits.

Establish the following factors, in addition to residence requirements, in applications for Australian benefits.

1. 1. 

   Evidence required for all applications

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     Income and assets of applicant

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     Identity of applicant

2. 2. 

   Evidence required for applications for retirement benefits

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     Date of birth of applicant

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     Date of birth of child(ren) under age 16 and relationship, if a supplement or parenting payment is claimed.

3. 3. 

   Evidence required for applications for survivors benefits

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     Date of death of individual

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     Date of birth of child(ren) under age 16 and relationship, if a parenting payment is claimed.

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     Date of marriage, if a bereavement payment/allowance is claimed.

4. 4. 

   Evidence required for applications for disability benefits

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     Degree of disability

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     Date of birth of child(ren) under age 16 and relationship, if a supplement is claimed.

Take the following actions when developing evidence to support applications for Australian benefits.

1. 1. 

   Researching types of evidence

   Refer to the following policy if the applicant requests guidance on the types of evidence to submit:

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     GN 00302.000 Proof of age

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     GN 00304.000 Proof of death

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     GN 00306.000 Proof of parent/child relationship

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     GN 01743.220 Proof of identity in section A of the special application for Australian benefits

2. 2. 

   Accepting evidence

   Whenever Totalization benefits are claimed from Australia the applicant must submit the evidence noted in GN 01702.200 - GN 01702.230.

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     SSA accepts any evidence the applicant submits;

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     Photocopy the evidence, certify the copies, and return the original to the applicant. See GN 00301.105 for information concerning certifying evidence for Totalization claims;

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     Complete the Modernized Development Worksheet (MDW) screen to show the date the FO sent the Australian claim to DIO. Show, "Totalization" as the ISSUE;

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     Inform the applicant that the responsible Australian agency will contact him or her directly to obtain any additional documents or evidence to make a determination.

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     Send the claim to the Division of International Operations (DIO) at the following address without the evidence if an applicant is unable to obtain the necessary evidence within a reasonable period.

     NOTE: Do not hold claims for Australian benefits for prolonged periods pending receipt of evidence.

     Social Security Administration
     
     OEIO - DIO
     
     P.O. Box 17769
     
     Baltimore, MD 21235-7769
     
     Fax number: 410-966-1961

     NOTE: If courier service is used, mail to:

     Social Security Administration
     
     Division of International Operations
     
     6100 Wabash Avenue
     
     Baltimore, MD 21235

3. 3. 

   Documenting the file

   Document the file as follows:

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     Indicate on the Australian benefit claim file any factor of entitlement verified previously for the U.S. claim;

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     For concurrent Title II claims, send the Title II claim and relevant evidence to the Program Service Center (PSC) of jurisdiction;

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     Electronically send a certified photocopy of the relevant evidence with the Australian claim to DIO; and

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     If a prior Title II claim was filed, include a Master Beneficiary Record (MBR) to DIO to show which factors, other than disability, have been verified..

4. 4. 

   Obtaining the number holder's (NH's) U.S earnings record

   Obtain the NH's U.S. earnings record in all claims for Australian benefits as follows:

   • •

     When the applicant is filing for both U.S. and Australian benefits, complete the Modernized Claims System (MCS) screens. The MSC screens will automatically generate a separate earnings record for the Australian claim;

   • •

     When the applicant files for Australian benefits only, which is an MCS exclusion, request an Informational/Certified earnings record (ICER) per MS 02101.004; and

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     Obtain proof of lag earnings (unposted paid earnings in the current or preceding year) if U.S. covered work in the lag period is alleged and the applicant is filing for any Australian benefit.

     For proof of lag wages, see RS 01404.005 and RS 01404.018. For proof of lag self-employment income, see RS 01804.100.

In addition to taking the actions in GN 01743.205E., take the following actions when developing medical evidence for Australian disability claims.

1. 1. 

   Australian benefits only

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     Accept any medical evidence the applicant submits for Australian benefits. Do not attempt to secure evidence for the applicant or offer advice as to what types of evidence Australia may need.

   NOTE: Applicants for Australian disability benefits must also complete a Work Ability form (WA) which is available on the intranet, see GN 01743.220.

   • •

     Send all submitted medical evidence and claims file to DIO at the following address:

   Social Security Administration
   
   OEIO - DIO
   
   P.O. Box 17769
   
   Baltimore, Maryland 21235-7769
   
   USA

   Fax number: 410-966-1861

   NOTE: For information about routing of claims for U.S. benefits involving Totalization, see GN 01702.310

   • •

     Complete the Modernized Development Worksheet (MDW) screen to show the date the FO sent the Australian claim to DIO. Show "Totalization" as the ISSUE, and

   • •

     Transmit the file without medical evidence if it is not readily available.

   Advise the applicant that the Australian agency will contact him or her directly to obtain any required evidence.

2. 2. 

   Australian benefits and concurrent Title II Claim

   • •

     Follow the instructions in GN 01702.400 - GN 01702.415.

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     Advise the applicant to complete a Work Ability form that is available on the intranet, see GN 01743.220.

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  GN 00301.105 Certifying evidence for Totalization Claims.

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  GN 00302.000 Proof of Age

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  GN 00304.000 Proof of Death

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  GN 00305.000 Proof of Marital Relationship

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  GN 00306.000 Child Relationship and Dependency

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  GN 01702.110 Application for Benefits under a U.S. International Social Security (Totalization) Agreement (Form SSA-2490-BK)

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  GN 01702.125 Retroactive Life of Applications for Foreign Benefits

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  GN 01702.130 Prospective Life of Applications for Foreign Benefits

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  GN 01702.400 Developing Medical Evidence in Claims for U.S. Totalization Disability Benefits

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  GN 01702.415 Development of Medical Evidence and Routing of Claims for Foreign Disability Benefits

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  MS 02101.004 Informational/Certified Earnings Records - Totalization (ICIC)

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  GN 01743.215 Application for Benefits under the Australian Agreement

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  MS 03507.001 Introduction to SSA-2490 - Overview

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  MS 03509.011 Totalization (TOTL) screen

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  RS 01301.000 Living With, Contributions and One-Half Support

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  RS 01404.005 Lag earnings

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Use the following information to determine which application screens to complete when taking claims for U.S. Totalization benefits under the agreement with Australia.

All applicants for Australian benefits must complete a special application form (Form AUS140–US(A).0210). This form has two parts. Part A contains instructions for completing the form and Part B is the actual application. Since Australian benefits are income/resource tested, all applicants must also complete Form Mod (i) listing their income and assets. In addition, applicants for Australian disability benefits must also complete a Work Ability-Customer Information form (Form WA) showing how their disabilities impact their daily activities.

When applicants submit special application forms for Australian benefit, the FO should:

1. 1. 

   Access the Totalization Benefits Resource Kit.

2. 2. 

   Print Part A and B of the Australian application form (Form AUS140–US(A).0210) and income and assets form (Form Mod i) and give them to the applicant for completion.

3. 3. 

   If the applicant is filing for disability benefits, also print the Work Ability form (Form WA) and give it to the applicant for completion.

4. 4. 

   Provide any necessary assistance in completing the Australian forms.

5. 5. 

   Photocopy and certify any documents (evidence) submitted by the applicant.

6. 6. 

   Send the claim (with certified copies) to OIO in Baltimore at the address shown in GN 01702.310.

Once OIO receives the claim, OIO will send the claim directly to the Australian agency along with a copy of the applicant's U.S. coverage record.

• •

  MS 03507.001, Introduction to SSA-2490 - Overview

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  MS 03509.011 Totalization (TOTL)

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  GN 01702.110 Application for Benefits under a U.S. International Social Security (Totalization) Agreement (Form SSA-2490-BK)

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  GN 01702.310 Routing of Claims for U.S. Benefits Involving Totalization

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  GN 01702.315 Processing Totalization Insured - Status Notices in Claims for U.S. Benefits