A supplementary social security agreement between Australia and Austria, concluded yesterday in Vienna by the Minister for Foreign Affairs, the Hon Stephen Smith, and the Austrian Minister for Labour, Social Affairs and Consumer Protection, Mr Rudolf Hundstorfer, will eliminate double superannuation coverage between the two countries.
The agreement is expected to commence from mid 2011 and will ensure that when employees are sent temporarily to work in the other country, compulsory superannuation and social security contributions will no longer be made into both countries' systems.
Double coverage arises where an employee is sent from one country to work temporarily in another country and the employer and the employee are required to pay superannuation or social security contributions for the employee in both countries.
Australia and Austria have an existing Social Security Agreement dealing with pensions.
This supplementary agreement deals with superannuation removing the doubling up on super payments.
"The supplementary agreement will improve economic links by reducing costs for businesses operating in Australia and Austria," Mr Bowen said.
"Generally, seconded workers from Austria will continue to contribute to and be covered by the Austrian social security system and will not be subject to Australia's Superannuation Guarantee.
"Similarly, Australian workers seconded to Austria will remain subject to Australia's Superannuation Guarantee and contributions will not be required to be made to the Austrian social security system.
The Agreement incorporates the same principles of avoiding double coverage included in many of Australia's other social security agreements, including those recently signed with Poland, and the Czech Republic.
18 February 2010