ATO Announces New International Agreements On Superannuation

by Mary Swire, Tax-News.com, Hong Kong

10 September 2008

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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