EXPLANATORY STATEMENT
Issued by the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs
Subject: Social Security (International Agreements) Act 1999
Social Security (International Agreements) Act 1999 Amendment Regulations 2008 (No. 2)
Commencement (Agreement between Australia and Finland on Social Security) Instrument 2009
Paragraph 2(1)(b) of the Social Security (International Agreements) Act 1999 Amendment Regulations 2008 (No. 2) (the Amendment Regulations) provides for Schedule 1 to the Amendment Regulations to commence on a day fixed by legislative instrument made by the Minister.
The Amendment Regulations amend the Social Security (International Agreements) Act 1999 (the Act) by inserting (in its correct numerical position) the Agreement on Social Security between Australia and the Republic of Finland (the Agreement) done at Helsinki on 10 September 2008 as new Schedule 24 to the Act.
The Agreement provides, in accordance with the requirements of Article 25, for entry into force on the first day of the second month following the month in which notes are exchanged by the Parties through the diplomatic channel notifying each other that all constitutional or legislative matters as are necessary to give effect to the Agreement have been finalised. The notes were exchanged on 19 May 2009.
Paragraph 2(2)(a) of the Amendment Regulations provides that the legislative instrument made for the purposes of commencing Schedule 1 is prescribed for the table in subsection 44(2) of the Legislative Instruments Act 2003 (the LIA), so that it is not subject to disallowance.
In addition, paragraph 2(2)(b) of the Amendment Regulations provides that the legislative instrument made for the purposes of commencing Schedule 1 is prescribed for the table in subsection 54(2) of the LIA, so that it is not subject to sunsetting.
These exemptions are appropriate given that the legislative instrument is similar in effect to a commencement Proclamation, which is exempt from disallowance and sunsetting under the LIA.
The commencement provision also satisfies the requirement in subsection 8(2) of the Act that regulations not come into operation on a day earlier than the day the relevant agreement comes into effect for Australia, and also satisfies paragraph 12(1)(c) of the LIA.
The legislative instrument specifying the commencement of the Agreement also ensures that the Federal Register of Legislative Instruments contains a complete record in relation to the commencement of the Amendment Regulations.
Consultation was unnecessary for this legislative instrument as this instrument is of a minor or machinery nature and does not substantially alter existing arrangements. It has no direct, or indirect effect on business.
Overview
The Social Security (International Agreements) Act 1999 was enacted to facilitate the implementation of social security agreements between Australia and other countries. This Act was introduced to address the need for a streamlined legal framework that would enable the enforcement and administration of social security arrangements with international partners, thus ensuring that Australians and eligible foreigners can access social security benefits without administrative hurdles. Enacted by the Parliament of Australia, the Act's primary policy objective is to enhance the coordination and cooperation in social security matters, providing clarity and protection for individuals who reside or work across international borders. The 2009 amendment regulations, including the "Commencement (Agreement between Australia and Finland on Social Security) Instrument 2009," further refine these objectives by incorporating specific agreements, such as the one with Finland, into the legislative framework. These amendments ensure that the implementation of international social security agreements is timely and aligned with the obligations under the respective treaties.
Scope and Application
The Social Security (International Agreements) Act 1999 Amendment Regulations 2008 (No. 2) and the associated Commencement (Agreement between Australia and Finland on Social Security) Instrument 2009, provide for the incorporation and commencement of the Agreement on Social Security between Australia and the Republic of Finland into Australian law. The Act applies to individuals and entities that are subject to the social security laws of Australia, particularly those that may be affected by international agreements concerning social security. The geographic reach of this Act is national, as it pertains to the Australian social security system, which operates under the Commonwealth. The regulations specify that the commencement of the Agreement is exempt from disallowance and sunsetting, ensuring that the legislative instrument is consistent with commencement Proclamations under the Legislative Instruments Act 2003. These measures ensure that the regulations take effect from the day the Agreement enters into force for Australia, which is the first day of the second month following the exchange of notes by the Parties.
Key Provisions
The Social Security (International Agreements) Act 1999 Amendment Regulations 2008 (No. 2) introduce key changes to the Social Security (International Agreements) Act 1999, primarily by inserting the Agreement on Social Security between Australia and the Republic of Finland as new Schedule 24 to the Act (sections 2(1) and 2(2)(a) of the Amendment Regulations). This addition facilitates the application of the Agreement's provisions within Australian law, ensuring that the social security arrangements between the two countries are legally enforceable in Australia. The commencement of this Agreement is regulated by legislative instrument, which specifies the exact date it comes into effect, in accordance with the requirements outlined in section 25 of the Agreement.
Under the amended Act, the obligations imposed on the parties or entities governed by the Agreement include the adherence to the terms set out in the Agreement, which may involve the sharing of information, coordination of benefits, and the provision of services as per the bilateral agreement. Both Australian and Finnish authorities are required to implement the necessary measures to give effect to the Agreement, which could include administrative adjustments, policy alignments, and the establishment of communication channels between the relevant social security bodies.
Failure to comply with the provisions of the Agreement could result in various legal consequences. Although the specific penalties are not detailed within the text, breaches of the Agreement could potentially lead to civil or criminal consequences depending on the nature and severity of the non-compliance. Under Australian law, breaches of social security agreements can result in fines, legal actions, or other administrative penalties as prescribed by relevant legislation. The exact penalties would be determined by the courts or administrative bodies in accordance with the laws applicable at the time of the breach.