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 2011 (No. 2)
Commencement (Agreement between Australia and the Slovak Republic on Social Security) Instrument 2011
Paragraph 2(1)(b) of the Social Security (International Agreements) Act 1999 Amendment Regulations 2011 (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. That day is 1 January 2012.
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 Slovak Republic on Social Security (the Agreement) done at New York on 21 September 2010 as new Schedule 28 to the Act.
The Agreement provides, in accordance with the requirements of paragraph 1 of Article 27, for entry into force on the first day of the third month following the month in which notes are exchanged the Contracting 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 14 October 2011.
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) Act 1999 Amendment Regulations 2011 (No. 2) (F2011L02468) was enacted to incorporate the Agreement between Australia and the Slovak Republic on Social Security into Australian legislation. The primary purpose of this amendment was to address the need for a formal agreement to facilitate the provision of social security benefits to individuals who reside or have resided in both Australia and the Slovak Republic, thereby filling a gap in the legal framework governing such cross-jurisdictional social security arrangements. Enacted by the Minister for Families, Housing, Community Services and Indigenous Affairs, the policy objective of these regulations was to ensure that the agreement would be effective from the date it entered into force, thereby providing clarity and legal basis for the exchange of social security information and benefits between the two countries. This legislative change was introduced to ensure compliance with international commitments and to support the social security needs of Australian citizens and residents with ties to the Slovak Republic.
Scope and Application
The Social Security (International Agreements) Act 1999 Amendment Regulations 2011 (No. 2) amends the Social Security (International Agreements) Act 1999 to incorporate the Agreement between Australia and the Slovak Republic on Social Security into Australian law. This legislation applies to the persons and entities that fall within the scope of the Agreement, including those who are subject to the social security laws of either Australia or the Slovak Republic. The Agreement pertains to the coordination of social security systems to avoid double social security contributions and to provide continuity of social security benefits to individuals who work or reside in both countries. The geographic reach of this Act extends to the Commonwealth of Australia and is influenced by the international agreement with the Slovak Republic. The commencement of the Agreement is set for 1 January 2012, in accordance with the legislative instrument made by the Minister for Families, Housing, Community Services and Indigenous Affairs. The regulations ensure that the commencement of the Agreement is exempt from disallowance and sunsetting, aligning with the requirements of the Legislative Instruments Act 2003, given the minor nature of the changes and their focus on administrative machinery rather than substantive policy shifts.
Key Provisions
The Social Security (International Agreements) Act 1999 Amendment Regulations 2011 (No. 2) (Amendment Regulations) amend the Social Security (International Agreements) Act 1999 (Act) by incorporating the Agreement between Australia and the Slovak Republic on Social Security (the Agreement) as Schedule 28 to the Act. This amendment, which inserts the Agreement into the Act, is effective from 1 January 2012, as specified in paragraph 2(1)(b) of the Amendment Regulations. The Agreement, which was executed on 21 September 2010 in New York, will come into force on the first day of the third month following the exchange of diplomatic notes between the Contracting Parties, confirming the completion of all necessary formalities to give effect to the Agreement. The notification process was finalised on 14 October 2011.
The Amendment Regulations impose specific obligations on the parties and entities governed by the Act, including the requirement to comply with the provisions of the Agreement. This includes the implementation of measures to ensure that individuals and businesses affected by the Agreement understand and can comply with the new social security arrangements between Australia and the Slovak Republic. The regulations are designed to facilitate the smooth transition and application of the Agreement's provisions, ensuring that the rights and obligations of individuals and employers under the Agreement are effectively managed and enforced.
Under the Act, breaches of the provisions outlined in the Agreement may result in various civil and criminal consequences. For example, failure to comply with the requirements for social security contributions, benefit entitlements, or other obligations stipulated in the Agreement could result in penalties. The specific penalties for breaches are not detailed in the provided text, but they would typically include fines, legal actions, or other sanctions as prescribed by the Act or related legislation. The maximum penalties would depend on the severity of the breach and the specific provisions of the Agreement that were contravened.
In accordance with the Legislative Instruments Act 2003 (LIA), the legislative instrument that specifies the commencement of the Agreement is exempt from disallowance and sunsetting, as outlined in paragraphs 2(2)(a) and 2(2)(b) of the Amendment Regulations. This exemption is appropriate because the legislative instrument is akin to a commencement proclamation, which is exempt from disallowance and sunsetting under the LIA. The instrument also ensures that the Federal Register of Legislative Instruments maintains a complete record of the commencement of Schedule 1 to the Amendment Regulations. The decision not to consult on this legislative instrument was based on the fact that it is of a minor or machinery nature and does not significantly alter existing arrangements or have a direct or indirect effect on business.