Bilateral agreements - what are my super obligations when my employee is working overseas?

How do the agreements work?

Under these agreements, you and your eligible employee are exempt from making SG (or equivalent) contributions in the country your employee is temporarily working in, provided they remain covered by compulsory SG arrangements in Australia.

Generally, when your Australian employee is temporarily working overseas (and you are an Australian employer), they are still covered by our SG law and you must continue to make SG contributions for them.

SG law does not apply to all workers. For more information about the SG law and who it covers, refer to the Guide to superannuation for employers.

Example

Jack is an Australian resident working in Australia for an Australian employer. His employer intends to send him to the United States to work for a year. Jack's employer must make compulsory social security (including super) contributions for him under United States law. In addition, Jack's employer also must make SG contributions for him in Australia.

Before Jack leaves Australia, his employer requests a certificate of coverage from us. This is to check and to certify that the agreement between the United States and Australia applies to his situation. Jack and his employer are exempt from making contributions under United States' law. However, SG contributions must continue to be made for Jack in Australia.

Similarly, if a United States' employee is sent to work temporarily in Australia and their employer has obtained a certificate of coverage, they are exempt from Australia's SG legislation and the employee and their employer must continue to make social security contributions under the United States' system.