Under Australian law, a person must be both resident and physically present in Australia to file a claim for benefits. Article 8.1 removes this restriction for people who are resident and physically present in the United States, or in a third country with which Australia has concluded a Social Security agreement that provides for mutual administrative assistance. (As of January 2001, Australia had such agreements with 10 countries: Austria, Canada, Cyprus, Denmark, Ireland, Italy, Malta, the Netherlands, Portugal and Spain.)
As a result of this provision, a person who is a resident of Australia, the United States or a designated third country, and who is present in any one of those countries, will be able to file a claim for Australian benefits.