C. Four new International Social Security Agreements
1 January 2004 and ongoing
Australia will give priority to finalising new social security agreements with Croatia, Norway, Slovenia and Switzerland, under the same principles as Australia's existing agreements.
Subject to negotiation, the agreements with Croatia, Norway and Switzerland will also include provisions to regulate compulsory superannuation contributions for Australian employees working temporarily in those countries, and for foreign workers from those countries working in Australia. The provisions will mean that contributions do not have to be made into both countries' superannuation systems in respect of the same work.
Australia has 11 international social security agreements already in place and new agreements with Germany and the United States of America are to commence later in 2002. The agreements enable people, who have divided their working lives between Australia and these countries, to claim and/or maximise a pension from both countries. Agreements overcome restrictions on the export of pensions and allow people to add periods of residence and contributions in both countries towards any minimum period required to qualify for a pension.
Agreement countries Excludes Denmark for which figures are currently unavailable. currently pay $384 million a year in foreign pensions into Australia in respect of about 84,000 people. Australia pays $150 million into those agreement countries in respect of about 34,000 people.
Total Government Funding: $6.5 million over four years