Minister for Revenue and Assistant Treasurer, Senator the Hon. Helen Coonan, has welcomed the commencement tomorrow of the first international agreements eliminating double superannuation coverage for workers sent temporarily between Australia and the United States and Portugal.
"The new Social Security Agreements between Australia and the United States and Australia and Portugal, both which commence tomorrow, include for the first time provisions eliminating double superannuation coverage" Senator Coonan said.
"This is an important development and shows the Howard Government's commitment to reduce costs on Australian employers and making Australia competitive in the international market for skilled workers".
Double superannuation coverage arises where an employee is sent from one country to work temporarily in the other country and the employer is required to pay superannuation contributions for the employee in both countries.
The effect of the bilateral agreements will be that the employer will only be required to pay contributions in the employee's home country.
Employers sending workers overseas and wishing to take advantage of the Agreements will need to contact the Australian Taxation Office. Information explaining the Agreements and how they apply is available on the ATO website www.ato.gov.au/super.