Commonwealth Numbered Acts

SOCIAL SECURITY (REWRITE) AMENDMENT ACT 1991 No. 116, 1991 - SCHEDULE 3

                         SCHEDULE 3                     Section 5

New Schedule 2
                         SCHEDULE 2                    Section 1208

AGREEMENT ON SOCIAL SECURITY BETWEEN THE GOVERNMENT OF AUSTRALIA
AND THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND
The Government of Australia and the Government of the United Kingdom of Great
Britain and Northern Ireland,
Wishing to strengthen the existing friendly relations between the two
countries;
Having established reciprocity in the field of social security by means of an
Agreement signed by the Parties at Canberra on29 January 1958, which was
amended by a further Agreement signed at Canberra on 16 August 1962 and by
other Agreements set out in Exchanges of Notes at Canberra on 6 March 1975 and
at London on 29 and 31 December 1986;
Wishing to consolidate the above Agreements and their extensions and
modifications into a single document; and
Wishing to extend and modify the scope of that reciprocity and to take account
of changes in their legislation;
Have agreed as follows:
PART I
GENERAL PROVISIONS
ARTICLE 1
DEFINITIONS (1) For the purpose of this Agreement, unless the context
otherwise requires: `benefit' means pension, allowance or benefit payable
under the legislation of one (or the other) Party and includes any increase
payable for a dependant; `competent authority' means, in relation to the
territory of the United Kingdom, the Secretary of State for Social Security
for Great Britain, the Department of Health and Social Services for Northern
Ireland, the Department of Health and Social Security of the Isle of Man, the
Social Security Committee of the States of the Island of Jersey or the States
of Guernsey Insurance Authority, as the case may require, and, in relation to
Australia the Secretary to the Department of Social Security; `competent
institution' means the institution from which the person concerned is entitled
to receive benefit or would be entitled to receive benefit if he were resident
in the territory of the Party where that institution is situated;
`contribution', in relation to the legislation of the United Kingdom, does not
include a reduced rate contribution payable by a married woman or a widow, or
a graduated contribution within the meaning of that legislation; `employed
person' means a person who, in the applicable legislation, comes within the
definition of an employed earner or of an employed person or is treated as
such and the words "person is employed" shall be construed accordingly;
`employment' means employment as an employed person and the words `employ',
`employed' or `employer' shall be construed accordingly; `equivalent period'
means, in relation to the United Kingdom, a period for which contributions
appropriate to the benefit in question have been credited under the
legislation of that Party; `family allowance', in relation to the United
Kingdom, includes child benefit payable under the legislation of the United
Kingdom, and, in relation to Australia means family allowance payable under
the legislation of Australia; `former Agreement' means the Agreement on Social
Security signed at Canberra on 29 January 1958, on behalf of the Parties, as
amended by the Agreement on Social Security signed at Canberra on 16 August
1962 and by the Agreements set out in the Exchanges of Notes at Canberra on 6
March 1975 and at London on 29 and 31 December 1986; `full standard rate'
means, in relation to any benefit payable under the legislation of the United
Kingdom, the rate at which the beneficiary would be qualified to receive that
benefit if the relevant contribution conditions were fully satisfied;
`gainfully occupied' means employed or self-employed; `Guernsey' means the
Islands of Guernsey, Alderney, Herm and Jethou; `income support' means income
support payable under the legislation of Great Britain and Northern Ireland
and supplementary benefit payable under the legislation of the Isle of Man;
`legislation' means the legislation specified in Article 2 which, in relation
to the United Kingdom, is in force in any part of the territory of the United
Kingdom and, in relation to Australia, is in force in Australia; `means test'
means any provision of the legislation of Australia which affects the payment
or rate of a benefit on account of income or property; `qualified to receive'
means, in relation to the United Kingdom, entitled to receive subject to any
disqualification or any provision about claiming, hospital treatment or
overlapping benefits which may be appropriate; `retirement pension' means
retirement pension or old age pension payable under the legislation of the
United Kingdom and includes a contributory old age pension under that
legislation and any graduated retirement benefit constituted by an increase in
the weekly rate of retirement pension under that legislation, but excludes
additional (earnings-related) pension payable under that legislation;
`self-employed person' means a person who, in the applicable legislation,
comes within the definition of a self-employed earner or of a self-employed
person or is treated as such, and the words `person is self-employed' shall be
construed accordingly; `spouse carer's pension' means a carer's pension
payable to a husband under the legislation of Australia; `territory' means in
relation to the United Kingdom, Great Britain, Northern Ireland and also the
Isle of Man, the Island of Jersey and Guernsey; `widow' means, in relation to
Australia, a de jure widow but does not include a woman who is the de facto
spouse of a man; `widow's benefit' means, in relation to the United Kingdom,
widow's allowance, widow's payment, widowed mother's allowance (including any
graduated retirement benefit constituted by an increase in the weekly rate of
widowed mother's allowance), widowed father's allowance or widow's pension
under the legislation of any part of the United Kingdom. (2) In the
application by a Party of this Agreement in relation to a person, any term not
defined in this Article shall, unless the context otherwise requires, have the
meaning ascribed to it in the legislation of the Parties or, in the event of a
conflict of meaning, by whichever of the legislation of the Parties is the
more applicable to the circumstances of that person. (3) Any reference in this
Agreement to `Article' means an Article of this Agreement, and any reference
to a `paragraph' is a reference to a paragraph of the Article in which the
reference is made, unless it is stated to the contrary.
ARTICLE 2
SCOPE OF LEGISLATION (1) The provisions of this Agreement shall apply:

   (a)  in relation to the territory of the United Kingdom, to:

   (i)  the Social Security Acts 1975 to 1989 and the Social Security
        (Northern Ireland) Acts 1975 to 1989;

   (ii) the Social Security Acts 1975 to 1989 (Acts of Parliament) as those
        Acts apply to the Isle of Man by virtue of Orders made, or having
        effect as if made, under the Social Security Act 1982 (an Act of
        Tynwald);

   (iii) the Social Security (Jersey) Law, 1974;

   (iv) the Social Insurance (Guernsey) Law, 1978;

   (v)  the Child Benefit Act 1975, the Child Benefit (Northern Ireland) Order
        1975 and the Child Benefit Act 1975 (an Act of Parliament) as that Act
        applies to the Isle of Man by virtue of Orders made, or having effect
        as if made, under the Social Security Act 1982 (an Act of Tynwald);
        the Family Allowances (Jersey) Law, 1972 and the Family Allowances
        (Guernsey) Law, 1950; and to the legislation which was repealed or
        consolidated by those Acts, Laws or Orders or repealed by legislation
        consolidated by them; and

   (b)  in relation to Australia, to the Social Security Act 1947. (2) Subject
        to the provisions of paragraphs (3) and (4) this Agreement shall apply
        also to any laws, orders and regulations which supersede, replace,
        amend, supplement or consolidate the legislation specified in
        paragraph (1). (3) This Agreement shall not affect any benefits
        payable under the legislation of either Party except in the manner set
        out in this Agreement. (4) This Agreement shall not apply to
        legislation on social security of the Institutions of the European
        Communities or to any convention or agreement on social security which
        either Party has concluded with a third party or to any laws, orders
        or regulations which amend the legislation specified in paragraph (1)
        for the purpose of giving effect to such a convention or agreement but
        shall not prevent either Party from taking into account under its
        legislation the provisions of any other convention or agreement which
        that Party has concluded with a third party. (5) Subject to the
        provisions of paragraph (2), this Agreement shall apply, unless the
        Parties agree otherwise, only to benefits described in the legislation
        specified in paragraph (1) at the date of coming into force of this
        Agreement and for which specific provision is made in this Agreement.
PART II
RETIREMENT PENSIONS, AGE PENSIONS AND BENEFITS FOR WIDOWS
ARTICLE 3
RETIREMENT PENSIONS (1) For the purpose of determining entitlement to
retirement pension under the legislation of any part of the territory of the
United Kingdom, a person who is permanently resident in that part of the
territory shall be treated as if he or she, or, in the case of a claim made by
a married woman or a widow by virtue of her husband's insurance, her husband,
had paid contributions under the legislation of that part of the territory for
any period during which that person or that person's husband, as the case may
be:

   (a)  was resident in Australia and had attained the age of sixteen years;
        and

   (b)  being a woman had not attained the age of sixty years, or sixty-five
        years in the case of Guernsey or Jersey, or being a man had not
        attained the age of sixty-five years. (2) Where:

   (a)  a woman claiming retirement pension by virtue of her own insurance had
        been, but is not at the time of the claim, married, and chooses to
        have her former husband's contributions taken into account for the
        purpose of her claim; and

   (b)  her former husband had been resident in Australia for any period
        between the ages of sixteen years and sixty-five years; her former
        husband shall be treated, for the purpose of her claim, as if he had
        paid contributions under the legislation of the territory of the
        United Kingdom for any period referred to in sub-paragraph (b). (3)
        Where a person who is permanently resident in any part of the
        territory of the United Kingdom was receiving an age pension,
        otherwise than by virtue of this Agreement or the former Agreement, at
        the time when he or she was last in Australia, and was over
        pensionable age at that time, he or she shall, if not qualified by
        virtue of the preceding paragraphs of this Article to receive
        retirement pension at the full standard rate under the legislation of
        that part of the territory of the United Kingdom, be treated as if he
        or she satisfied the contribution conditions for such a pension. (4)
        Any pension which is awarded by virtue of this Article shall continue
        to be payable if the pensioner ceases to be permanently resident in
        one part of the territory of the United Kingdom and becomes
        permanently resident in another part of the territory of the United
        Kingdom, and the competent authority of the latter part of the
        territory of the United Kingdom shall not determine entitlement under
        this Article. (5) Any pension which is awarded by virtue of this
        Article shall cease to be payable if the pensioner ceases to be
        permanently resident in the territory of the United Kingdom. (6) Where
        a person is entitled to receive a benefit by virtue of the provisions
        of this Article, the rate of benefit which he or she would otherwise
        be entitled to receive, but for this paragraph, shall be reduced by
        the amount of benefit which is payable by virtue of the legislation of
        Australia in accordance with the provisions of Article 8 (7).
ARTICLE 4
AGE PENSIONS (1) Where a person is qualified to receive an age pension under
the legislation of Australia otherwise than by virtue of the provisions of
this Agreement, or the former Agreement, that pension shall be payable and the
provisions of this Article shall not apply under that legislation. (2) For the
purpose of any claim by a person to receive an age pension under the
legislation of Australia, that person shall be treated as an Australian
resident for any period prior to that person's last arrival in Australia for
which:

   (a)  that person; or

   (b)  if that person is a woman who is or has been married, her husband,
        paid contributions, or had earnings or contributions credited, under
        the legislation of the United Kingdom. (3) For the purpose of applying
        paragraph (2), any period during which the person (being a woman) and
        her husband both paid contributions or had earnings or contributions
        credited to them shall be counted only once. (4) For the purpose of
        applying paragraph (2), a period when the person or, if the person is
        a woman who is or has been married, her husband paid contributions or
        had earnings or contributions credited, which coincided with a period
        in which that person was an Australian resident, shall be counted only
        once. (5) A person who receives from Australia a wife's pension or a
        spouse carer's pension by virtue of the fact that the spouse of that
        person receives an age pension by virtue of this Article, shall, for
        the purpose of this Agreement, be deemed to receive that pension by
        virtue of this Agreement.
ARTICLE 5
UK BENEFITS FOR WIDOWS (1) For the purpose of determining entitlement to
widow's benefit under the legislation of any part of the territory of the
United Kingdom, a widow who is permanently resident in that part of the
territory shall be treated as if her husband had paid contributions under the
legislation of that part of the territory for any period during which he was
resident in Australia between the ages of sixteen years and sixty-five years.
(2) Where a widow who is permanently resident in any part of the territory of
the United Kingdom was receiving a pension payable to widows under the
legislation of Australia, otherwise than by virtue of this Agreement or the
former Agreement, at the time when she was last in Australia, and is not
qualified by virtue of paragraph (1) to receive widow's allowance, widowed
mother's allowance or widow's pension at the full standard rate under the
legislation of that part of the territory of the United Kingdom where she is
permanently resident, she shall be qualified under that legislation to receive
at the full standard rate:

   (a)  widow's allowance if she had been receiving a pension payable to
        widows under the legislation of Australia for less than one year in
        the case of Jersey and 26 weeks in the case of Guernsey; or

   (b)  widowed mother's allowance if she is not qualified to receive widow's
        allowance or if she has ceased to be qualified to receive widow's
        allowance, and if she has a child in her family or if she has residing
        with her a person under the age of nineteen years or sixteen years in
        the case of Jersey or eighteen years in the case of Guernsey, and the
        pension payable to widows which she was receiving at the time when she
        was last in Australia was being paid to her on the basis that that
        child or person was her dependent child; or

   (c)  widow's pension or retirement pension, as the case may require, if she
        is not qualified to receive widow's allowance, or widowed mother's
        allowance but had reached the age of fifty-five years or forty years
        where that widow is permanently resident in Jersey or Guernsey, either
        before she last left Australia or when she ceased to be qualified to
        receive widow's allowance or widowed mother's allowance. (3) Any
        pension which is awarded by virtue of this Article shall continue to
        be payable if the pensioner ceases to be permanently resident in one
        part of the territory of the United Kingdom and becomes permanently
        resident in another part of the territory of the United Kingdom, and
        the competent authority of the latter part of the territory of the
        United Kingdom shall not determine entitlement under this Article. (4)
        Any widow's benefit which is awarded by virtue of this Article shall
        cease to be payable if the widow ceases to be permanently resident in
        the territory of the United Kingdom. (5) Where a person is entitled to
        receive a benefit by virtue of the provisions of this Article, the
        rate of benefit which she would otherwise be entitled to receive, but
        for this paragraph, shall be reduced by the amount of benefit which is
        payable by virtue of the legislation of Australia in accordance with
        the provisions of Article 8 (7). (6) The provisions contained in this
        Article shall apply, in an equal and opposite way to widowed father's
        allowance under the legislation of Jersey. (7) In the case of widows'
        benefits payable under the legislation of Jersey, contribution credits
        shall only be awarded to widows permanently resident in Jersey. (8) In
        the case of widow's benefit payable under the legislation of Guernsey:

   (a)  Class 3 contributions shall be credited only to a widow who is
        permanently resident in Guernsey;

   (b)  where Class 3 contributions have not been credited to a widow under
        the provisions of sub-paragraph (a) above and the rate of old age
        pension which would be payable is less than the rate of widow's
        benefit payable immediately before pension age is attained the rate of
        old age pension shall be adjusted so that it is equal to the rate of
        widow's benefit which was payable, or which would be payable, if
        widow's benefit were payable beyond pension age.
ARTICLE 6
UK WIDOWED MOTHER'S ALLOWANCE - CHILD IN AUSTRALIA
Where a woman would be qualified under the legislation of the United Kingdom,
otherwise than by virtue of this Agreement or the former Agreement, to receive
widowed mother's allowance, including an allowance for a child, if her child
were in the territory of the United Kingdom, she shall be qualified to receive
that allowance for any period during which the child is in Australia.
ARTICLE 7
AUSTRALIAN BENEFITS FOR WIDOWS (1) Where a person is qualified to receive a
pension payable to widows under the legislation of Australia otherwise than by
virtue of the provisions of this Agreement or the former Agreement, that
pension shall be payable and the provisions of this Article shall not apply
under that legislation. (2) For the purpose of any claim to receive a pension
payable to widows under the legislation of Australia, a widow shall be treated
as if she had been an Australian resident during any period for which her
husband (or her last husband if more than one) had paid contributions or had
had earnings or contributions credited to him under the legislation of the
United Kingdom. (3) For the purpose of applying paragraph (2), any period when
the widow was an Australian resident which coincided with a period when her
husband (or her last husband if more than one) had paid contributions or had
had earnings or contributions credited to him shall be counted only once.
ARTICLE 8
CONVERSION OF AUSTRALIAN RESIDENCE (1) For the purpose of calculating
entitlement under the legislation of Great Britain, Northern Ireland or the
Isle of Man, to any benefit in accordance with Articles 3 and 5, periods of
residence in Australia before 6 April 1975 shall be treated as if they had
been contribution or equivalent periods completed under that legislation. (2)
For the purpose of calculating entitlement under the legislation of Great
Britain, Northern Ireland or the Isle of Man, to any benefit in accordance
with Articles 3 and 5, periods of residence in Australia on or after 6 April
1975 shall be treated as if a Class 3 contribution had been paid under that
legislation for each week of residence. (3) Notwithstanding the provisions of
paragraph (2), where residence in Australia during any tax year beginning on
or after 6 April 1975 is for a period of less than the complete tax year then
for each week of that period during which a person satisfies the competent
authority that he or she was employed in Australia:

   (a)  for each week up to 5 April 1987, a person shall be treated as having
        paid a contribution as an employed earner on earnings equivalent to
        two-thirds of that year's upper earnings limit under the legislation
        of Great Britain, Northern Ireland or the Isle of Man;

   (b)  for each week commencing on or after 6 April 1987, a person shall be
        treated as having earnings on which primary Class 1 contributions have
        been paid under the legislation of Great Britain, Northern Ireland or
        the Isle of Man; these earnings shall be treated as equivalent to
        two-thirds of that year's upper earnings limit. (4) For the purpose of
        calculating entitlement under the legislation of Guernsey to any
        benefit in accordance with Articles 3 and 5, residence in Australia
        between the ages of sixteen years and sixty-five years shall be
        treated as if a Class 3 contribution had been paid under the
        legislation of Guernsey for each week of residence. (5) For the
        purpose of calculating entitlement under the legislation of Jersey to
        any benefit in accordance with Articles 3 and 5, a person shall be
        treated:

   (a)  for each week completed during residence in Australia between the ages
        of sixteen years and sixty-five years, being a week in the relevant
        quarter, as having paid contributions which derive a quarterly
        contribution factor of 0.077 for that quarter;

   (b)  for each week completed during residence in Australia between the ages
        of sixteen years and sixty-five years, being a week in a relevant
        year, as having paid contributions which derive an annual contribution
        factor of 0.0193 for that year. (6) Where it is not possible to
        determine accurately the periods of time in which certain insurance
        periods were completed under the legislation of the United Kingdom,
        such periods shall be treated as if they did not overlap with periods
        of residence in Australia, and they shall be taken into account to the
        best advantage of the beneficiary. (7) For the purpose of calculating
        the rate of any benefit payable to a person under the legislation of
        the United Kingdom in accordance with the provisions of Articles 3, 5
        or 13, the amount of any Australian benefit to be taken into account
        shall be initially the rate which that person is receiving at the date
        of entitlement to the United Kingdom benefit, and thereafter the rate
        which that person is receiving:

   (a)  on the date on which the latest uprating order, made by the Secretary
        of State for Social Security under section 63 of the Social Security
        Act 1986, came into effect; or

   (b)  in respect of Guernsey, on the date on which the latest Ordinance made
        under Section 19 of the Social Insurance (Guernsey) Law, 1978 came
        into effect; or

   (c)  in respect of Jersey, annually on 1 October in accordance with Article
        13 of the Social Security (Jersey) Law 1974. (8) Notwithstanding the
        provisions of paragraph (7), where a person referred to in that
        paragraph has the rate of that Australian benefit reduced under the
        legislation of Australia upon being absent from Australia for 12
        months, the benefit payable to that person under the legislation of
        the United Kingdom shall be adjusted upon that reduction occurring.
ARTICLE 9
CONVERSION OF UK EARNINGS FACTORS OR CONTRIBUTION FACTORS
In order to convert to a period of contributions or credits for the purposes
of Articles 4 and 7:

   (a)  the competent authority of Great Britain, Northern Ireland or the Isle
        of Man shall divide any earnings factor achieved in any tax year
        commencing after 5 April 1975 under its legislation, by that years
        lower earnings limit;

   (b)  the competent authority of Jersey shall multiply any contribution
        factor achieved by a person under its legislation:

   (i)  by thirteen in the case of a quarterly contribution factor; and

   (ii) by fifty-two in the case of an annual contribution factor.
The result shall be expressed as a whole number, any remaining fraction being
ignored. The figure so calculated, subject to a maximum of the number of weeks
during which the person was subject to that legislation in a quarter or in a
year, shall be treated as representing the number of weeks of contributions or
credits completed under that legislation.
PART III
UK FAMILY ALLOWANCE AND GUARDIAN'S ALLOWANCE
ARTICLE 10
FAMILY ALLOWANCE (1) Where a person who has been resident in Australia becomes
permanently resident in the territory of the United Kingdom, the period during
which that person was resident in Australia shall be treated, for the purpose
of a claim by the person for family allowance under the legislation of the
United Kingdom, as a period during which that person was resident in that
territory. (2) For the purpose of any claim to family allowance under the
legislation of Guernsey, a person whose place of birth is in Australia shall
be treated as if his or her place of birth was in Guernsey. (3) In the case of
Jersey, family allowance shall only be paid in respect of a child who is
ordinarily resident in Jersey.
ARTICLE 11
GUARDIAN'S ALLOWANCE (1) Where a person who is permanently resident in the
territory of the United Kingdom claims guardian's allowance under the
legislation of any part of that territory for a child who is permanently
resident there, each complete week during which either parent of that child
was resident in Australia after reaching sixteen years of age shall be treated
as if that week had been a complete week of residence in that part of the
territory of the United Kingdom or as if that parent had been an insured
person under the legislation of Guernsey. (2) If either parent of a child
referred to in paragraph (1) was born in Australia, that parent shall be
treated as if he or she had been born in the United Kingdom.
PART IV
SICKNESS BENEFITS AND INVALIDITY BENEFITS
ARTICLE 12
AUSTRALIAN SICKNESS BENEFIT
Where a person who is temporarily absent from any part of the territory of the
United Kingdom and who is legally in Australia claims sickness benefit under
the legislation of Australia, that person shall, for the purpose of that
claim, be deemed to be an Australian resident.
ARTICLE 13
UK SICKNESS BENEFIT AND INVALIDITY BENEFIT (1) Where a person who is
permanently resident in the territory of the United Kingdom and is ordinarily
gainfully occupied, or would be, but for his or her incapacity for work,
claims sickness or invalidity benefit under the legislation of the relevant
part of that territory, then, for the purpose of calculating entitlement to
those benefits, periods during which that person was in Australia shall be
treated in accordance with the provisions of this Article. (2) For the purpose
of calculating entitlement under the legislation of Great Britain, Northern
Ireland or the Isle of Man to sickness or invalidity benefit:

   (a)  periods of gainful occupation completed in Australia before 6 April
        1975 shall be treated as if they had been contribution or equivalent
        periods completed under the legislation of Great Britain, Northern
        Ireland or the Isle of Man; and

   (b)  periods completed as a self-employed person in Australia after 5 April
        1975 shall be treated as if they have been contribution periods
        completed as a self-employed person or equivalent periods completed
        under the legislation of Great Britain, Northern Ireland or the Isle
        of Man. (3) For the purpose of calculating an earnings factor for
        assessing entitlement to sickness or invalidity benefit under the
        legislation of Great Britain, Northern Ireland or the Isle of Man, a
        person shall be treated for each week beginning in a relevant tax
        year, during which he or she was an employed person in Australia, as
        follows:

   (a)  for each week commencing on or after 6 April 1975 and up to 5 April
        1987, as having a contribution paid as an employed earner on earnings
        equivalent to two-thirds of that year's upper earnings limit; and

   (b)  for each week beginning in a relevant tax year commencing on or after
        6 April 1987, as having earnings on which primary Class 1
        contributions have been paid. These earnings shall be treated as
        equivalent to two-thirds of that year's upper earnings limit. (4) For
        the purpose of calculating entitlement under the legislation of
        Guernsey to sickness or invalidity benefit:

   (a)  periods during which a person was gainfully occupied as an employed
        person in Australia shall be treated as if they had been contribution
        or equivalent periods completed as an employed person under the
        legislation of Guernsey; and

   (b)  periods during which a person was gainfully occupied as a
        self-employed person in Australia shall be treated as if they had been
        contribution or equivalent periods completed as a self-employed person
        under the legislation of Guernsey. (5) For the purpose of calculating
        entitlement under the legislation of Jersey to any benefit in
        accordance with this Article, a person shall be treated:

   (a)  for each week completed during residence in Australia between the ages
        of sixteen years and sixty-five years being a week in the relevant
        quarter, as having paid contributions which derive a quarterly
        contribution factor of 0.077 for that quarter;

   (b)  for each week completed during residence in Australia between the ages
        of sixteen years and sixty-five years being a week in a relevant year,
        as having paid contributions which derive an annual contribution
        factor of 0.0193 for that year. (6) For the purpose of calculating
        entitlement under the legislation of the relevant part of the
        territory of the United Kingdom to sickness or invalidity benefit, a
        person shall be treated as if he or she had had earnings or
        contributions credited to him or her:

   (a)  as an employed person for any week during which he or she was in
        Australia and was unemployed and available for work or was incapable
        of work, if that week was part of a period during which he or she was
        or would ordinarily have been employed; and

   (b)  as a self-employed person for any other week during which he or she
        was in Australia and was incapable of work, if that week was part of a
        period during which he or she was or would ordinarily have been
        self-employed. (7) Where a person who is permanently resident in the
        territory of the United Kingdom was receiving a sickness benefit, an
        invalid pension, a sheltered employment allowance or a rehabilitation
        allowance under the legislation of Australia when he or she was last
        in Australia and is incapable of work at the time when he or she
        arrives in the territory of the United Kingdom, he or she shall be
        treated under the legislation of the United Kingdom as if, at that
        time and for so long as he or she continues from that time to be
        incapable of work, he or she satisfied the contribution conditions
        under which sickness or invalidity benefit is payable. (8) For the
        purpose of any claim to invalidity benefit under the legislation of
        the United Kingdom, any period in respect of which a person received
        sickness benefit or an invalid pension under the legislation of
        Australia shall be treated as if it were a period of entitlement to
        sickness benefit or invalidity benefit completed under the legislation
        of the United Kingdom. (9) Nothing in this Article shall diminish any
        right which a person has, apart from this Agreement, to receive
        sickness or invalidity benefit under the legislation of the United
        Kingdom. (10) Where a person is entitled to receive a benefit by
        virtue of the provisions of this Article, the rate of benefit which he
        or she would otherwise be entitled to receive, but for this paragraph,
        shall be reduced by the amount of benefit which is payable by virtue
        of the legislation of Australia in accordance with the provisions of
        Article 8 (7).
PART V
UK UNEMPLOYMENT BENEFIT
ARTICLE 14 (1) Where a person who is permanently resident in the territory of
the United Kingdom except for Jersey claims unemployment benefit under the
legislation of any part of that territory, then, for the purpose of
calculating entitlement to that benefit, periods during which that person was
in Australia shall be treated in accordance with the provisions of this
Article. (2) Periods of gainful occupation as an employed person in Australia
before 6 April 1975 shall be treated as if they had been contribution or
equivalent periods completed under the legislation of Great Britain, Northern
Ireland or the Isle of Man. (3) For the purpose of calculating an earnings
factor for assessing entitlement to unemployment benefit under the legislation
of Great Britain, Northern Ireland or the Isle of Man, a person shall be
treated for each week beginning in a relevant tax year, during which he or she
was an employed person in Australia, as follows:

   (a)  for each week commencing on or after 6 April 1975 and up to 5 April
        1987, as having a contribution paid as an employed earner on earnings
        equivalent to two-thirds of that year's upper earnings limit; and

   (b)  for each week beginning in a relevant tax year commencing on or after
        6 April 1987, as having earnings on which primary Class 1
        contributions have been paid. These earnings shall be treated as
        equivalent to two-thirds of that year's upper earnings limit. (4) For
        the purpose of calculating entitlement to unemployment benefit under
        the legislation of Guernsey, periods during which a person was
        gainfully occupied as an employed person in Australia shall be treated
        as if they had been contribution or equivalent periods completed as an
        employed person under the legislation of Guernsey. (5) A person shall
        be treated as if he or she had had earnings or contributions credited
        to him or her as an employed person for any week during which he or
        she was in Australia and was unemployed and available for work or was
        incapable of work, if that week was part of a period during which he
        or she was or would ordinarily have been gainfully occupied under a
        contract of service. (6) Nothing in this Article shall diminish any
        right which a person has, apart from this Agreement, to receive
        unemployment benefit under the legislation of the United Kingdom. (7)
        The provisions of this Article shall not apply to a person who claims
        unemployment benefit under the legislation of Guernsey and who has not
        paid 26 contributions as an employed person under that legislation.
PART VI
MISCELLANEOUS PROVISIONS
ARTICLE 15
TEMPORARY ABSENCES (1) A benefit which is payable to a person by Australia
under Part II of this Agreement shall not cease to be payable solely where the
person is absent from Australia and the competent authority of Australia is
satisfied that the absence is temporary. After the person has been temporarily
absent from Australia for a period of 12 months at any one time that person
shall then be deemed to have departed permanently from Australia. (2) Where a
person, who is qualified to receive any benefit under the legislation of the
United Kingdom, would be qualified to receive also an increase of that benefit
for a dependant if the dependant were in that territory, he or she shall be
qualified to receive that increase while the dependant is temporarily in
Australia.
ARTICLE 16
CALCULATION OF AUSTRALIAN BENEFITS (1) Subject to paragraph (5), the
provisions of this Article shall apply, in relation to the territory of the
United Kingdom, only to retirement pensions and widows' benefits, and, in
relation to Australia only to age pensions, wives' pensions, spouse carer's
pensions and pensions payable to widows, being benefits payable under the
legislation of Australia solely by virtue of this Agreement; and, for the
purpose of applying those provisions, the effect of any provision of the
legislation of any part of the territory of the United Kingdom which concerns
overlapping benefits shall be disregarded. (2) Subject to the provisions of
paragraph (3), where a person who is qualified to receive an Australian
benefit also receives a United Kingdom benefit, the rate of that Australian
benefit shall be set by:

   (a)  calculating that person's income according to the legislation of
        Australia but disregarding in that calculation the United Kingdom
        benefit received by that person;

   (b)  deducting the amount of the United Kingdom benefit received by that
        person from the maximum rate of that Australian benefit; and

   (c)  applying to the remaining benefit obtained under subparagraph (b) the
        relevant rate calculation set out in the legislation of Australia
        using as the person's income the amount calculated under sub-paragraph
        (a). (3) Where a married person is, or both that person and his or her
        spouse are, in receipt of a United Kingdom benefit or benefits, each
        of them shall be deemed, for the purpose of paragraph (2) and for the
        legislation of Australia, to be in receipt of one half of either the
        amount of that benefit or the total of both of those benefits, as the
        case may be. (4) If a person would receive an Australian benefit
        except for the operation of paragraph (2) or except for that person's
        failure to claim the benefit, then for the purpose of a claim by that
        person's spouse for a payment under the legislation of Australia that
        person shall be deemed to receive that benefit. (5) The reference in
        paragraph (4) to a payment under the legislation of Australia to the
        spouse of a person is a reference to a payment of:

   (a)  an age pension;

   (b)  an invalid pension;

   (c)  an unemployment benefit;

   (d)  a sickness benefit;

   (e)  a sheltered employment allowance; or

   (f)  a rehabilitation allowance, under that legislation, whether payable by
        virtue of this Agreement or otherwise. (6) For the purpose of this
        Article `benefit' includes any additional earnings-related pension,
        incremental addition, invalidity allowance and age addition payable
        with the benefit.
ARTICLE 17
DUAL ENTITLEMENT IN AUSTRALIA Where:

   (a)  a claim is made for a benefit payable by Australia, by virtue of this
        Agreement; and

   (b)  there are reasonable grounds for believing that the claimant may also
        be entitled, whether by virtue of this Agreement or otherwise, to a
        benefit that is payable under the legislation of the United Kingdom
        and that, if paid, would affect the amount of the first-mentioned
        benefit, that first-mentioned benefit shall not be paid until a claim
        is duly lodged for payment of the second-mentioned benefit and the
        first-mentioned benefit shall not continue to be paid if the claim for
        the second-mentioned benefit is not actively pursued.
ARTICLE 18
DUAL ENTITLEMENT IN UK
Where a person is qualified to receive a benefit under the legislation of the
United Kingdom pursuant to Articles 3, 5 or 13 and is also qualified to
receive an Australian benefit, the rate of that Australian benefit shall be
determined under the legislation of Australia but in that determination the
amount of the benefit payable under the legislation of the United Kingdom
shall be disregarded in the computation of that person's income.
ARTICLE 19
RECOVERY OF BENEFIT (1) Where a benefit is payable by a Party to a person in
respect of a past period (in this Article referred to as `the first benefit'),
and

   (a)  for all or part of that same period, the other Party has paid to that
        person a benefit under its legislation (in this Article referred to as
        `the second benefit'); and

   (b)  the amount of the second benefit would have been reduced had the first
        benefit been paid during that period, the competent authority of the
        former Party, at the request of the competent authority of the latter
        Party, shall:

   (c)  deduct from the first benefit an amount equal to the amount of the
        second benefit that would not have been paid had the first benefit
        been paid on a periodical basis throughout that past period; and

   (d)  transmit any sum deducted in accordance with subparagraph (c) above to
        the competent authority of the latter Party. Any balance shall be paid
        by the former Party direct to the person. (2) Where the United Kingdom
        has paid a benefit to a person in respect of a past period and:

   (a)  for all or part of that same period, Australia has paid to that person
        a benefit under its legislation; and

   (b)  the amount of the benefit paid by Australia would have been reduced
        had the United Kingdom paid its benefit during that period, the
        competent authority of Australia may determine that:

   (c)  the amount of its benefit which would not have been paid had the
        United Kingdom paid its benefit on a periodical basis throughout that
        period is a debt due by that person to Australia; and

   (d)  the amount, or any part, of that debt may be recovered from future
        benefits which Australia may pay under its legislation to that person.
        (3) A reference in paragraphs (1) or (2) to a payment under the
        legislation of a Party means a benefit payable whether by virtue of
        this Agreement or otherwise. (4) Where a person has received income
        support under the legislation of Great Britain, Northern Ireland or
        the Isle of Man for a period for which that person subsequently
        becomes entitled to any benefit under the legislation of Australia,
        the competent institution of Australia, at the request of and on
        behalf of the competent institution of Great Britain, Northern Ireland
        or the Isle of Man, shall withhold from the benefit due for that
        period the amount by which the income support paid exceeded what would
        have been paid had the benefit under the legislation of Australia been
        paid before the amount of income support was determined, and shall
        transmit the amount withheld to the competent institution of Great
        Britain, Northern Ireland or the Isle of Man.
ARTICLE 20
MEANING OF PERMANENTLY RESIDENT
For the purpose of applying the provisions of this Agreement, a person shall
be treated as permanently resident in the territory of the United Kingdom if
he or she is ordinarily resident in that territory and the competent authority
of that territory is satisfied that it is that person's intention to remain so
resident permanently.
ARTICLE 21
GAINFUL OCCUPATION IN AUSTRALIA
For the purpose of Articles 13 and 14, a person shall be treated as having
been gainfully occupied in Australia during:

   (a)  any period of service, whether in Australia or elsewhere, in the
        Defence Force of Australia; and

   (b)  any period of absence from Australia during which that person was an
        employee and was treated as being a resident of Australia within the
        meaning of any Act relating to the imposition, assessment and
        collection of a tax upon incomes in force in Australia.
PART VII
ADMINISTRATION
ARTICLE 22
ADMINISTRATIVE ARRANGEMENTS
The competent authorities of the United Kingdom of Great Britain and Northern
Ireland and the Secretary to the Department of Social Security for the
Government of Australia shall make whatever administrative arrangements are
necessary from time to time in order to implement this Agreement.
ARTICLE 23
DISCLOSURE OF INFORMATION (1) The competent authorities may supply to each
other such information as is necessary for the operation of this Agreement or
of the legislation of each territory to which this Agreement applies as if the
matter involved the application of their own legislation. (2) Any information
received by a competent authority pursuant to paragraph (1) shall be protected
in the same manner as information obtained under the legislation of that
territory and shall be disclosed only to persons or authorities (including
courts and administrative bodies) concerned with matters, including the
determination of appeals, arising under the provisions of this Agreement and
of the legislation to which this Agreement applies and shall be used only for
those purposes. (3) In no case shall the provisions of paragraphs (1) and (2)
be construed so as to impose on the competent authority of either Party the
obligation:

   (a)  to carry out administrative measures which are at variance with the
        laws or the administrative practice of either Party; or

   (b)  to supply particulars which are not obtainable under the laws or in
        the normal course of the administration of either Party. (4) The
        competent authorities shall notify each other of legislation that
        supersedes, amends, supplements or replaces the legislation within the
        scope of this Agreement in relation to their respective Parties,
        promptly after the first-mentioned legislation is enacted. (5) The
        appropriate competent authority shall also provide copies of the
        relevant legislation and of related explanatory material and any
        further amplification or clarification that the other competent
        authority may request.
PART VIII
TRANSITIONAL AND FINAL PROVISIONS
ARTICLE 24
TRANSITIONAL PROVISIONS (1) No provision of this Agreement shall confer any
right to receive any payment of a benefit for a period before the date of the
entry into force of this Agreement. (2) Any contribution which a person has
paid or earnings or contributions credited under the legislation of the United
Kingdom before the date of the entry into force of this Agreement, and any
period during which a person was resident in Australia before that date, shall
be taken into account for the purpose of determining the right to receive a
benefit in accordance with the provisions of this Agreement under the
legislation of Australia and under the legislation of the United Kingdom
respectively. (3) Subject to paragraph (4), where, on the date on which this
Agreement enters into force, a person:

   (a)  is in receipt of a benefit under the legislation of either Party by
        virtue of the former Agreement; or

   (b)  is qualified to receive a benefit referred to in subparagraph (a) and,
        where a claim for that benefit is required, has claimed that benefit,
no provision of this Agreement shall affect the entitlement to receive that
benefit. (4) The rate of a benefit which is payable by virtue of paragraph (3)
shall, subject to this Agreement, be assessed in accordance with the
provisions of the legislation of the relevant Party.
ARTICLE 25
ENTRY INTO FORCE (1) The Agreement shall enter into force on a date to be
specified in Notes exchanged by the Parties through the Diplomatic channel
notifying each other that all matters as are necessary to give effect to this
Agreement have been finalised. (2) Subject to the provisions of Article 24,
the former Agreement shall terminate on the date of entry into force of this
Agreement.
ARTICLE 26
TERMINATION PROVISIONS (1) Subject to paragraph (2), this Agreement shall
remain in force until the expiration of twelve months from the date on which
either Party receives from the other written notice through the diplomatic
channel of the intention of the other Party to terminate this Agreement. (2)
In the event that this Agreement is terminated in accordance with paragraph
(1), the Agreement shall continue to have effect in relation to all persons
who by virtue of this Agreement:

   (a)  at the date of termination, are in receipt of benefits; or

   (b)  prior to the expiry of the period referred to in that paragraph, have
        lodged claims for, and would be entitled to receive, benefits.
In witness whereof the undersigned, duly authorised by their respective
Governments, have signed this Agreement. Done in duplicate at London this 1st
day of October 1990. For the Government of Australia:
Graham Richardson             For the Government of the

United Kingdom of Great
Britain and Northern Ireland:
Caithness