(1) Subject to subsection (2), a claim is not a proper claim unless the person making the claim, or on whose behalf the claim is being made, is:
(a) an Australian resident; and
(b) in Australia;
on the day on which the claim is lodged.
Note: For Australian resident see section 5G.
(2) Subsection (1) does not apply to a claim if the person making the claim, or on whose behalf the claim is being made:
(a) is outside Australia; and
(b) is receiving a service pension, a veteran payment or a social security pension; and
(c) would, if that pension or payment were cancelled, be eligible for income support supplement.
Note: If the person ceases to be an Australian resident after having made a proper claim and after having met all the eligibility requirements (see section 36), the person's eligibility is not affected.