Social Security Agreement Australia India
The Agreement does not affect the treatment of diplomats and consular officials under the relevant Vienna Conventions on diplomatic and consular relations. Our bilateral social security agreement with India applies in the event of a double coverage, i.e. if you or your staff in both countries, for the same work of your employee, you have to pay superguarantee contributions (or equivalent). It applies to the Australian Superguarantee Act and the relevant Indian social security and tax laws. Under these agreements, Australia equates periods of social security/residence in these countries with periods of Australian residence in order to respect the minimum entitlement periods for Australian pensions. Typically, other countries count periods of work stay in Australia as social security periods to fulfill their minimum payment periods. As a rule, each country pays a partial pension to a person who has lived in both countries. The implementation of the SA between Australia and India is a welcome step that allows organisations to potentially eliminate double costs due to dual pension contributions from overseas workers covered by mandatory pension schemes, both in Australia and India. In addition, the implementation of the SA between Australia and India provides social protection to the international beneficiaries of the transfer, so that they do not lose their right to social security benefits in their home country when they go to work in the other country. Authorization to renew a cover certificate is determined on a case-by-case basis. We can only grant an extension by mutual agreement to the competent authority in India and only in certain circumstances. Bill is sent by his Australian employer to work in India for two years. Bill will continue to be covered by Australian superguarantee legislation and Indian laws, while they work in India, resulting in double super coverage.
When a double cover occurs, the agreement comes into effect and releases Bill and his employer from contributions under Indian law. Bill`s employer will continue to pay super-guarantee contributions, as requested in Australia. Australia currently has 31 bilateral international social security agreements. The agreement does not apply to self-employed Australian residents working in India. They are not subject to the Superguarantee Act in Australia, so there is no double super coverage. All applicants for an Australian retirement pension must meet the minimum age and residency requirements of Australian social security legislation. Australian pensions are also needs-dependent – that is, an income test and a wealth test are applied, and regardless of the lower pension rate, it is used for assessment purposes. The Department of Human Services website contains information on current income and asset limits. Australia currently has 30 international social security agreements with other countries, several of which are under negotiation. The Australia-India SSA largely resembles the SSA that Australia has signed with other countries. This SSA applies to Australia`s Superannuation Guarantee Act, which requires employers to provide contributions to Superannuation Guarantee for their employees….