ATO Announces New International Agreements On Superannuation
The Australian Taxation Office (ATO) announced on Wednesday that Australia has
entered into bilateral social security agreements with Korea, Greece and Germany.
The agreements are scheduled to commence on October 1, 2008.
These agreements - which apply to the non-profit sector only - remove the issue
of double superannuation coverage that can occur when employees are sent to
work temporarily in another country and there is a requirement to make superannuation
(or equivalent) contributions under the legislation of both countries for the
same work. Under these new agreements, non-profit organisations that send employees to
work in Korea, Greece or Germany can apply for exemption from making compulsory
superannuation (or equivalent) contributions in that country, provided that
the employee continues to receive compulsory super in Australia in accordance
with the Australian superannuation guarantee laws. Australia also has bilateral agreements that address double superannuation
coverage with Belgium, Chile, Croatia, Ireland, Norway, Portugal, Switzerland,
The Netherlands, and the United States. To take advantage of the super provisions in these agreements, employers can
apply to the ATO for a certificate of coverage. This certificate is accepted as proof by the other countries that the employer
or employee is subject to Australia’s superannuation guarantee legislation
and will remain so for the period the employee is on secondment in the other
country. .
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