Press Release - Agreement Eliminating Double Superannuation Coverage [30/09/2002]
C105/02
30 September 2002
AGREEMENT ELIMINATING DOUBLE SUPERANNUATION COVERAGE
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.