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  • Bilateral social security agreement with Chile

     

    Get it done

    Apply for a Certificate of coverageExternal Link online.

    When completing the request for a certificate of coverage, you will need to provide an Australian contact name and their phone, fax and e-mail details.

    When we issue a certificate, keep a copy for your records and give the original to your employee to take with them to Chile.

    End of get it done

     

    About the agreement

    When did the agreement start?

    The agreement started on 1 July 2004.

    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.

    Find out more

    Information about super, refer to the Guide to superannuation for employers.

    End of find out more

    In relation to Chilean law, the agreement applies to the relevant Chilean old-age, invalidity and survivor's pension legislation. For more information and the agreement, visit the Department of Families, Housing, Community Services and Indigenous Affairs website at http://www.fahcsia.gov.au/about-fahcsia/international-social-security-agreementsExternal Link

    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 Chilean law for the same work undertaken by your employee.

    Employees working temporarily in the other country (seconded employees)

    Where you send your employee to another country to work for a temporary period (not exceeding four years) and double super coverage occurs, you and your employee are subject only to the super laws of your home country. This means superannuation guarantee contributions (or equivalent) are only required under the law of the country that your employee is most likely to retire in.

    Example

    Penny is sent by her Australian employer to work in Chile for two years. Penny's employer must make contributions in Australia under the superannuation guarantee legislation. Penny and her employer must also make social security contributions under relevant Chilean law.

    As double super coverage occurs, the agreement takes effect and exempts Penny and her employer from making contributions under Chilean law. Penny's employer will continue to make contributions as required under the superannuation guarantee legislation in Australia.

    End of example

    This rule also applies where the employee is sent to work for a related company (provided double super coverage occurs).

    Government employees working temporarily in the other country (seconded government employees)

    Where a government employee is sent from one country to work in the other country temporarily, and double super coverage occurs, the employee and employer will be subject only to the law of the first country. For example, if a government employee is sent to work in Chile, only Australian law will apply and the employer and employee will not be required to make social security contributions under Chilean law.

    Attention

    The secondment period for government employees to work in Chile is not subject to the four-year limit.

    End of attention

    Self-employed people

    The agreement does not apply to self-employed Australian residents working in Chile. They are not subject to the superannuation guarantee law in Australia so double super coverage does not occur.

    Work on ships and aircraft

    If double super coverage occurs for a person working on a ship or aircraft in international traffic, the law that will apply is the law of the country in which the person is a resident.

    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 seconded employees

    Where an employee from Australia is sent to work temporarily in Chile, we will issue a Certificate of coverage to you on the basis you will continue to make superannuation guarantee contributions on behalf of your employee.

    Attention

    You should apply for a Certificate of coverageExternal Link from us before sending an employee to work temporarily in Chile.

    End of attention
    • Last modified: 13 Jan 2014QC 17616