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

What are your superannuation obligations when your employee is working overseas?

Australia has agreements with a number of countries addressing the issue of 'double superannuation coverage' for certain employees. This happens when your eligible employee works temporarily in another country and you (or your employee) must make super guarantee (SG) (or equivalent) contributions under the laws of both countries for the same work.

The agreements on double super coverage form part of broader international agreements on social security between Australia and a number of other countries.

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.

Which countries does Australia have agreements with?

Australia has agreements addressing double super coverage with the following countries.

Table 1: Country and start date of agreement

Country	Start date
Austria	1 January 2012
Belgium	1 July 2005
Chile	1 July 2004
Croatia	1 July 2004
Czech Republic	1 July 2011
Finland	1 July 2009
Germany	1 October 2008
Greece	1 October 2008
Hungary	1 October 2012
Ireland	1 January 2006
Japan	1 January 2009
Korea	1 October 2008
Latvia	1 January 2013
former Yugoslav Republic of Macedonia	1 April 2011
The Netherlands	1 April 2003
Norway	1 January 2007
The Republic of Poland	1 October 2010
Portugal	1 October 2002
Slovak Republic	1 January 2012
Switzerland	1 January 2008
United States of America	1 October 2002

For an explanation of each agreement and details about whether an agreement applies to you, select the name of the relevant country in the table above. You will also be able to apply for a certificate of coverage from these pages.

What is a certificate of coverage?

Authorities in other countries may require your employee to provide evidence that they are covered by an agreement to exempt you from making SG (or equivalent) contributions in that country. You should apply for a certificate of coverage before your employee leaves Australia.

The certificate is taken as proof by other countries that you, as the Australian employer, will continue making SG contributions for your employee in Australia while they are working in the other country. As a result, you (or your employee) are exempt from making compulsory SG (or equivalent) contributions under the law of the other country.

How do you apply for a certificate of coverage?

To apply for a certificate of coverage, select the relevant country below:

If you are unable to apply online or are having difficulties with the application process, phone us on 13 10 20.

By applying for a certificate of coverage for your employee, you are declaring that you will:

continue to make SG contributions on behalf of your eligible employee to an Australian super fund or retirement savings account while they are working overseas
pay enough super according to the Australian SG law
keep records of the level of super paid on behalf of your employee and payments made to Australian super funds or retirement savings accounts.

If you fail to meet the above requirements, we will cancel the certificate and notify the relevant foreign authorities.

Some countries allow an employee to apply for a certificate of coverage. In this case, your employee should check with you first to make sure you fully support them in making the application.

We will generally assess the application within 28 days and, if the request is approved, issue a certificate of coverage to your address. Keep a copy for yourself and give the original certificate to the employee.

We share information about a certificate of coverage with authorities in the country your employee is working in.

If your employee working overseas is a trustee of a self-managed super fund (SMSF), they need to review their SMSF management arrangements before they leave Australia. For more information about managing a SMSF, refer to Running a self-managed super fund (NAT 11032).

How do you cancel or change a certificate of coverage?

If you have a certificate of coverage for an employee and their secondment finishes earlier than expected, or the dates for their secondment change, you should email CASSuperBi-Lateralagreements@ato.gov.au and tell us the:

employer's name
employer's ABN
employer's email address
employee's name
certificate number
reason for cancellation or change.

The government intends to include provisions addressing double super coverage in all future international social security agreements that Australia negotiates.

Are more agreements planned?

No agreements are expected to start in the near future, however the government intends to include provisions addressing double super coverage in all future international social security agreements that Australia negotiates.

More information

For more information about the agreements and details of the social security aspects of these agreements, visit the International section of the Department of Families, Housing, Community Services and Indigenous Affairs website at www.fahcsia.gov.au/about-fahcsia/international-social-security-agreements

Last Modified: Friday, 15 February 2013

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