Malta-Australia social security agreement streamlined

A revised bilateral agreement on social security between Malta and Australia was signed yesterday by Australian High Commissioner Richard John Palk and the permanent secretary at the Ministry for the Family and Social Solidarity, Joseph Ebejer.

The agreement is a revision of the original that was signed in 1990. This followed a number of amendments to Australian social security legislation introduced since the 1990 accord was signed.

Family and Social Solidarity Minister Dolores Cristina said Australia hosted the largest number of Maltese migrant pensioners. She said 3,000 Maltese pensioners received their benefits in Australia and an equivalent number of Australians received 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 took effect on July 1, 1991 - was one of Australia's first shared responsibility agreements, in recognition of the high percentage of Maltese who went to Australia after World War II.

"Australia 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," he said.

The new agreement applies to any person who is or was an Australian resident, or who is or was insured in Malta. It ensures that periods of residence in Australia and periods when national insurance contributions were made in Malta are considered together so as to enhance entitlement conditions, thereby allowing for the payment of pro-rata benefits.

The new agreement is important because since the original one was signed the Australian government introduced reforms to invalidity and disability pensions. These allow only those people who have been assessed as being severely disabled to be paid indefinitely outside Australia. However, current recipients of a disability support pension will 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 pension 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 new agreement also contains provisions which state that the rate of an Australian pension being received will not change once a person visits or departs from Australia but will remain constant for the first 26 weeks of any temporary visit or departure.

Some of the agreements' articles were rewritten using simpler language.

With regard to Australian benefits, the new agreement covers age pension, disability support pension for the severely disabled and pensions payable to widows. The agreement also applies to wives of men receiving old age pensions or disability support pensions for the severely disabled, from Australia.

Regarding Maltese benefits, the new agreement covers contributory pensions in respect of retirement, contributory pensions in respect of invalidity, contributory pensions in respect of widowhood and non-contributory assistance and pension.

Apart from the provisions of the new agreement, this year the Department of Social Security embarked on a direct credit payment system of Maltese benefits payable in Australia, which means that Maltese migrants in Australia are receiving their Maltese benefit directly in 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.