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Apply for a Certificate of coverage online.
When we issue a certificate, keep a copy for your records and give the original to your employee to take with them to Germany.
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When did the agreement start?
The agreement is actually a supplementary agreement to the social security agreement between Australia and Germany. The supplementary agreement started on 1 October 2008. It applies to people sent to Australia or Germany for work before this time, but only for super contributions (or equivalent) made on or after 1 October 2008.
Example
Hans-Holger is an Australian resident working in Australia for his Australian employer. Starting 1 July 2008, Hans-Holger's employer sends him to work in Germany for two years. As Hans-Holger's employer must make super contributions for him under the superannuation guarantee legislation, Hans-Holger and his employer are exempt from making social security contributions under German law from 1 October 2008.
This exemption will only apply from 1 October 2008 - any contributions required under German law for the period up to 1 October 2008 must still be made. This means that Hans-Holger and his employer must make social security contributions under German law for the period from 1 July 2008 to 30 September 2008.
What Australian law does the agreement apply to?
The agreement applies to the Australian superannuation guarantee legislation requiring you as the employer to make superannuation guarantee contributions for your employees.
In relation to German law, the agreement applies to the relevant German social security law. For more information and the supplementary agreement, visit the Department of Families, Housing, Community Services and Indigenous Affairs website at http://www.fahcsia.gov.au/saabout-fahcsia/international-social-security-agreements
When does the agreement apply?
The agreement only applies where double super coverage occurs. This happens when you or your employee are required to make super contributions (or equivalent) under both the Australian and German law for the same work undertaken by your employee.
Employees sent to work temporarily in the other country
Where you send your employee to another country to work for a temporary period and double super coverage occurs, you and your employee are subject only to the super laws of your home country. This means super contributions (or equivalent) are only required under the law of the country that your employee is most likely to retire in.
The German agreement operates a little differently to most of the agreements Australia has with other countries. When making an application for a Certificate of coverage for your employee being sent to Germany, as an Australian employer you must indicate the relevant Article in the agreement that applies to the employment situation.
The following two examples will assist you when making an application for a Certificate of coverage.
Example 1: Detachment cases
Franz-Peter is sent by his Australian employer, XYZ Bank Limited, to work in Germany for two years. While in Germany, Franz-Peter will remain in the direct employment of XYZ Bank Limited. Franz-Peter's employer must still make contributions in Australia under the superannuation guarantee legislation. Franz-Peter and his employer must also make contributions under relevant German law.
As double super coverage occurs and Franz-Peter remains in the direct employment of his Australian employer, Article 5 of the supplementary agreement will take effect and exempt Franz-Peter and his employer from making contributions under German law. Franz-Peter's employer will continue to make contributions as required under the super guarantee legislation in Australia.
When making an application for a Certificate of coverage, Franz-Peter's employer should indicate that Article 5 of the supplementary agreement is applicable to Franz-Peter's circumstances.
Generally, Article 5 is applicable where the:
- employee remains employed by the same employer
- period of detachment is up to four years
- employee is ordinarily a resident of Australia.
Example 2: Secondment cases
Kristina is sent by her Australian employer, JKL Pharmaceuticals Limited, to work in Germany for two years. While in Germany, Kristina is employed by JKL Medical Research AG that is a subsidiary of JKL Pharmaceuticals Limited. Kristina's employer must still make contributions in Australia under the superannuation guarantee legislation. Kristina and her employer must also make contributions under relevant German law.
As double super coverage occurs and Kristina is employed by an associated employer while in Germany, Article 8 of the supplementary agreement will take effect and exempt Kristina and her employer from making contributions under German law. Kristina's employer will continue to make contributions as required under the superannuation guarantee legislation in Australia.
When making an application for a Certificate of coverage, Kristina's employer should indicate that Article 8 of the supplementary agreement is applicable to Kristina's circumstances.
Generally, Article 8 is applicable where the:
- employee is employed temporarily by an associated employer
- period of secondment is up to five years
- application for a Certificate of coverage is made within six months of starting employment in Germany.
Self-employed people
The agreement does not apply to self-employed Australian residents working in Germany. They are not subject to the superannuation guarantee law in Australia, so double super coverage does not occur.
Work on board sea-going vessels
The agreement does not affect the application of the laws of Australia or Germany for any employees working on board a sea-going vessel.
Diplomats
The agreement does not affect the treatment of diplomats and consulate officials under the relevant Vienna Conventions on diplomatic and consular relations.
Certificates of coverage for employees sent to Germany
Where an employee from Australia is sent to work temporarily in Germany, we will issue a Certificate of coverage to you on the basis that you continue to make superannuation guarantee contributions on behalf of your employee.
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You should apply for a Certificate of coverage from us before sending your employee to work temporarily in Germany.
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Last Modified: Monday, 27 August 2012