Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No. 3) 2002 No. 33
EXPLANATORY STATEMENT
Statutory Rules 2002 No. 33
Issued by the Authority of the Minister for Family and Community Services
Social Security (International Agreements) Act 1999
Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No. 3)
Subsection 8(1) of the Social Security (International Agreements) Act 1999 (the Act) provides that the regulations may add a Schedule setting out the terms of an agreement between Australia and another country, if the agreement relates to reciprocity in social security matters.
Section 25 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
The purpose of the Amendment Regulations is to:
• add the Agreement on Social Security between Australia and the United States of America at new Schedule 13 to the Act (the Agreement on Social Security between Australia and the United States of America done at Canberra on 27 September 2001) (Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No.3)); and
• add the Agreement on Social Security between Australia and the Federal Republic of Germany at new Schedule 14 to the Act (the Agreement on Social Security between Australia and the Federal Republic of Germany done at Canberra on 13 December 2000) (Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No. 3)).
The Agreement on Social Security between Australia and the United States of America and the Agreement on Social Security between Australia and the Federal Republic of Germany coordinate the social security schemes of the countries to give better welfare protection for people who move between Australia and the United States of America and between Australia and Germany respectively.
The Agreements will enable people with contribution records in the United States of America or Germany, now living in Australia, to claim and qualify for part pensions from the United States of America or Germany or, for those Australian residents who are not German citizens, to receive an increase in their existing German pension. Similarly, many former Australian residents living in the United States of America or Germany will be able to claim and qualify for a part Australian pension. The Agreement with the United States of America also includes provisions modifying Australia's Superannuation Guarantee arrangements to avoid double coverage of US employees, seconded to work temporarily in Australia. Reciprocal exemptions are provided for Australian workers sent temporarily to the United States of America.
The Agreement on Social Security between Australia and the United States of America was signed on 27 September 2001 by Senator Amanda Vanstone, Minister for Family and Community Services and His Excellency Mr J. Thomas Schieffer, the American Ambassador.
Article 24 of the Agreement on Social Security between Australia and the United States of America provides for the entry into force of the Agreement. The Agreement will enter into force on the first day of the third month following the date of the last notification between Australia and the United States of America through the diplomatic channel notifying each other that all constitutional and legislative matters as are necessary to give effect to the Agreement have been finalised. The Regulations specify that the commencement date is 1 October 2002. This will enable the Regulations to be tabled in both Houses of the Parliament and for the period of disallowance of the Regulations to pass before the last notification takes place. The last notification must be completed by or on 31 July 2002.
The Agreement on Social Security between Australia and Germany was signed on 13 December 2000 by Senator Jocelyn Newman, the then Minister for Family and Community Services and His Excellency Dr Horst Bächmann, the German Ambassador and Mr Walter Riester, the German Minister for Labour and Social Affairs.
Article 21 of the Agreement on Social Security between Australia and Germany provides for the entry into force of the Agreement. The Agreement will enter into force on the first day of the second month following the month in which instruments of ratification between Australia and Germany are exchanged. The Regulations specify that the commencement date is 1 October 2002. This will enable the Regulations to be tabled in both Houses of the Parliament and for the period of disallowance of the Regulations to pass before the instruments of ratification are exchanged. The instruments of ratification must be exchanged by or on 31 August 2002.
Overview
The Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No. 3) were enacted to facilitate the incorporation of two new agreements into the Social Security (International Agreements) Act 1999. This legislative amendment was introduced by the Parliament of Australia to address the gap in reciprocal social security arrangements between Australia and other countries, particularly the United States of America and Germany. The objective was to enhance welfare protection for individuals who move between these countries by coordinating their social security schemes. These agreements allow citizens of the United States and Germany to claim part pensions in their respective countries while living in Australia and vice versa. The regulations were issued under the authority of the Minister for Family and Community Services, ensuring that the legislative framework was updated to reflect the new international commitments.
Scope and Application
The Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No. 3) pertains to the establishment of reciprocal social security agreements between Australia and the United States of America and Australia and the Federal Republic of Germany. These regulations aim to incorporate the respective agreements into Australian law by adding them as new Schedules 13 and 14 to the Act. This legislative action applies to individuals who have social security contribution records in the United States of America or Germany and are currently residing in Australia, as well as to former Australian residents living in these countries. The amendments facilitate the claiming of part pensions from the United States or Germany for eligible individuals and provide for an increase in existing German pensions for non-German citizens residing in Australia. Additionally, Australian residents with contributions in the United States or Germany can qualify for a part Australian pension. The regulations extend to the coordination of Australia's superannuation arrangements to prevent double coverage of US employees seconded to work in Australia and reciprocal exemptions for Australian workers sent temporarily to the United States. The Act applies nationally across Australia, and the Regulations specify a commencement date of 1 October 2002, which allows for parliamentary disallowance periods and diplomatic notifications to be observed before the agreements enter into force.
Key Provisions
The Social Security (International Agreements) Act 1999 Amendment Regulations 2002 (No. 3) introduce two new schedules to the Act (sections 2 and 3). Schedule 13 outlines the Agreement on Social Security between Australia and the United States of America, while Schedule 14 details the Agreement on Social Security between Australia and the Federal Republic of Germany. These agreements aim to harmonise social security systems between the signatory countries to improve welfare protection for individuals moving between these nations. The agreements allow citizens to claim part pensions from their home countries even when residing in Australia, and vice versa for former Australian residents living in the US or Germany. Furthermore, the agreement with the United States includes provisions to prevent double coverage of superannuation for US employees temporarily working in Australia.
The Regulations impose specific obligations on the parties involved, namely Australia, the United States, and Germany. These include the need to coordinate and harmonise social security systems to ensure the seamless transition of social security benefits for individuals moving between the countries. The Regulations also require each country to notify the others when all necessary constitutional and legislative requirements have been met to give effect to the agreements. For instance, the United States must notify Australia by 31 July 2002 that all domestic requirements are satisfied for the agreement to take effect on 1 October 2002. Similarly, the instruments of ratification for the agreement with Germany must be exchanged by 31 August 2002 to allow the agreement to commence on the same date.
Non-compliance with the obligations set out in these Regulations could lead to various legal consequences. While the Regulations do not explicitly outline offences or penalties for breach, failure to meet the obligations might result in the non-application of the reciprocal social security benefits outlined in the agreements. This could potentially lead to financial hardship for individuals who do not receive the expected social security benefits. Additionally, if the necessary constitutional and legislative requirements are not fulfilled within the specified timeframes, the agreements may not enter into force, thereby negating the intended benefits of the coordination efforts.