Permission to renew a coverage certificate is set on a case-by-case basis. We can only grant an extension with the mutual agreement of the relevant agency in India and in certain circumstances. The bilateral social security agreement between India and Australia comes into force on 1 January 2016. Under this agreement, your social benefits remain protected in India while you work in Australia. The duration of service in both countries is envisaged in accordance with certain conditions of use of pension benefits. This applies to the use of the old age pension, the survival pension and the permanent disability pension in India. Your employer in Australia can also pay contributions to your social security account in Australia. This GMS-Flash Alert reports on the bilateral social security agreement between Australia and India, which came into force on January 1, 2016. All applicants for an Old Age Pension in Australia must meet the minimum age and residence criteria set out in Australian social security legislation. Australian pensions are also tested as a means – that is, there is an income test and an asset test, and depending on the result of the lower pension rate, it is used for evaluation purposes. The Department of Human Services website contains information on current limits on revenues and resources. Because you live in Canada, your income may also be taxable in Canada.
In this case, you can apply for an exemption from double taxation of the same income through benefits under the Double Tax Evasion Agreement (DBAA) between India and Canada. If you receive an Australian pension and may be entitled to a foreign pension, Australian social security legislation requires you to take reasonable steps to claim it. This is because Australia`s pension system is not based on contributions, but is funded by general tax revenues, and the government believes that all retirees should maximize their private income before ordering taxpayer-funded assistance. A full pension, subject to income and wealth controls, must be paid to a 45-year-old Australian Working Life Residence (AWLR). AWLR is the period of Australian residence between the age of 16 and age. For example, a person who has lived in Australia between the ages of 30 and 50 is 20 years old from Australia Working Life Residence and can receive 20/45ths of an Australian old age pension in India after retirement age.