EXPLANATORY STATEMENT
Issued by the authority of the Minister for Families, Community Services and Indigenous Affairs and Minister for Disability Reform
Subject: Social Security (International Agreements) Act 1999
Social Security (International Agreements) Amendment Regulation 2012 (No. 1)
Commencement (Agreement between Australia and the Republic of Latvia on Social Security) Instrument 2012
Paragraph 2(1)(b) of the Social Security (International Agreements) Amendment Regulation 2012 (No. 1) (the Amendment Regulations) provides for Schedule 1 to the Amendment Regulations to commence on a day fixed by legislative instrument made by the Minister. That day is 1 January 2013.
The Amendment Regulations amend the Social Security (International Agreements) Act 1999 (the Act) by inserting (in its correct numerical position) the Agreement between Australia and the Republic of Latvia on Social Security (the Agreement) done at Riga on 7 September 2011 as new Schedule 30 to the Act.
The Agreement provides, in accordance with the requirements of Article 22, for entry into force on the first day of the second month following the month in which the last written notification is exchanged by the Parties through the diplomatic channel notifying each other that all matters as are necessary to give effect to the Agreement have been finalised. The notification was completed on 13 November 2012.
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 Schedule 1 to 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) Amendment Regulation 2012 (No. 1) introduces a legislative instrument to amend the Social Security (International Agreements) Act 1999 by incorporating the Agreement between Australia and the Republic of Latvia on Social Security. Enacted by the Australian Parliament, the amendment aims to address the need for a formal agreement to facilitate the provision of social security benefits to citizens of both countries who are in either country, thereby avoiding double taxation and ensuring they are not disadvantaged by the cross-border nature of their residency or employment. The regulation sets the commencement date for the agreement as 1 January 2013, ensuring it aligns with the requirements set forth in the Legislative Instruments Act 2003, exempting it from disallowance and sunsetting provisions. The policy objective of this amendment is to strengthen international social security arrangements, providing a clear framework for the administration of social security benefits in a manner that is fair and efficient for the citizens involved.
Scope and Application
The Social Security (International Agreements) Amendment Regulation 2012 (No. 1) amends the Social Security (International Agreements) Act 1999 by incorporating the Agreement between Australia and the Republic of Latvia on Social Security as Schedule 30 to the Act. This legislative instrument applies to the relevant authorities and individuals who are subject to the terms of the Agreement, facilitating the implementation and enforcement of social security arrangements between the two countries. The Agreement's geographic reach extends to the Commonwealth, with its provisions affecting entities and individuals within Australia and Latvia as they pertain to social security matters. The regulation ensures that the Agreement comes into effect on the day fixed by legislative instrument, set as 1 January 2013, aligning with the Agreement's own entry-into-force clause. The legislative instrument is exempt from disallowance and sunsetting, as it is akin to a commencement Proclamation, thereby ensuring its continued effect and record in the Federal Register of Legislative Instruments.
Key Provisions
The main operative sections of the Social Security (International Agreements) Amendment Regulation 2012 (No. 1) involve the insertion of the Agreement between Australia and the Republic of Latvia on Social Security as new Schedule 30 to the Social Security (International Agreements) Act 1999 (Section 1). This Amendment Regulation specifies that the Agreement will come into force on the first day of the second month following the last written notification exchanged by both parties, which was completed on 13 November 2012 (Section 2(1)(b)). The commencement of the Agreement is set for 1 January 2013 (Section 2(1)(b)), ensuring that it aligns with the effective date of the agreement as stipulated by the parties.
The obligations and requirements imposed by the Amendment Regulation on the parties governed by the Act include the implementation of the Agreement between Australia and Latvia, which likely involves the coordination and exchange of information regarding social security matters. The Act and the Amendment Regulation require that all necessary domestic procedures be completed to give effect to the Agreement, including the necessary legislative changes. Both countries must also notify each other through diplomatic channels when all domestic requirements have been finalised (Section 22 of the Agreement). Additionally, the Amendment Regulation mandates that the legislative instrument for the commencement of Schedule 1 is exempt from disallowance and sunsetting, ensuring the continuity of its effect without the need for periodic legislative renewal or parliamentary scrutiny (Section 2(2) of the Amendment Regulations).
The Amendment Regulations outline specific consequences for non-compliance with the requirements set forth in the Act and the Agreement. While the explanatory statement does not detail specific offences or penalties for breaches of the Agreement itself, the Act and the associated regulations likely include provisions for enforcement and penalties for non-compliance with social security laws in general. Such penalties could include fines, imprisonment, or other legal sanctions, depending on the severity and nature of the breach. The legislative instrument’s exemption from disallowance and sunsetting ensures that the regulatory framework remains intact, thereby maintaining the integrity and enforceability of the social security provisions established by the Agreement.