Australia Social Security Agreements

Posted by admin @ 4:46 am on April 8, 2021

Australia`s social security system is based on the housing and finance situation. As a general rule, social security payments are only available to Australian residents who, if assessed on the basis of needy examinations, are eligible for income assistance. Some payments are subject to minimum living conditions. For more information on retirement qualifications, visit Australian Income Support – Residence Criteria. The agreements extend the legal conditions applicable to persons who cannot receive a pension from Australia or the contracting countries because they are unable to meet the minimum conditions of residence or contribution. In addition, some countries will only pay their pensions abroad in countries where there is an agreement that provides for it. Under these agreements, Australia equates social security periods/stays in these countries with periods of Australian residence in order to meet minimum qualification periods for Australian pensions. In other countries, periods of Australian working life are generally counted as social security periods to meet their minimum payment periods. Typically, each country pays a partial pension to a person who has lived in both countries.

All of these agreements are based on the concept of shared responsibility. Responsibility-sharing agreements are reciprocal. Under each agreement, partner countries make concessions to their social security qualification rules so that those covered by the agreement have access to payments that they may not be eligible for. The responsibility for social security is thus distributed among the countries in which a person has lived during his or her working years and where the person is able to obtain potential rights. In general, it is possible to access a pension from one country in the second country, although the paying country retains some discretion with regard to the exchange and delivery mechanisms used. This agreement may be amended in the future by complementary agreements which, as soon as they come into force, will be considered an integral part of this agreement. These agreements can be concluded retroactively if they specify. Bilateral social security agreements are international agreements concluded by Australia with certain countries. These agreements address the issue of “double superannuation coverage” that occurs when you work temporarily for your Australian employer abroad and have to pay super premiums (or equivalent contributions) in Australia and the country where you work. Australia`s agreements with Austria, Belgium, Chile, Croatia, the Czech Republic, Estonia, Finland, Germany, Greece, Hungary, India, Ireland, Japan, Korea, Latvia, the Republic of Northern Macedonia, the Netherlands, Norway, Poland, Portugal, the Slovak Republic, Switzerland and the United States also include provisions regulating supplementary pension contributions and social security contributions from partner countries for non-resident workers, in order to avoid double coverage.