Ruqayyah Snyder
Australia has bilateral social security agreements with several countries worldwide. These agreements are designed to share responsibility and close gaps in social security coverage for individuals who migrate between the countries. They allow individuals to claim social security payments in Australia or the other country and help meet the minimum requirements to qualify for a payment. Australia's social security agreements cover Asia, Europe, and the Americas, with specific agreements in place with countries like New Zealand and the United States. These agreements help individuals access pensions and address issues like double superannuation coverage for workers moving between countries.
| Characteristics | Values |
|---|---|
| Purpose | To share responsibility and close gaps in social security coverage for people who migrate between countries |
| Benefits | Access to certain pensions and social security payments from Australia and/or the agreement country that might not otherwise be accessible |
| Claiming process | Ability to lodge a claim for a pension from either country regardless of residence; combining periods of residence in Australia with periods of contributions in the agreement country to meet minimum residence or contribution requirements for pensions |
| Coverage | Agreements with countries in Asia, Europe, and the Americas; ended agreement with the United Kingdom as of March 1, 2001 |
| Bilateral agreements | Prevent double payment of superannuation or equivalent contributions; allow employers to apply for a certificate of coverage, exempting them from paying super in both countries |
| Examples of countries | United States, New Zealand |
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What You'll Learn
Australia and the United States
Australia has agreements with several countries to share responsibility for social security coverage. These agreements allow individuals to access certain pensions and benefits from Australia and/or the agreement country that they may not otherwise be able to access.
The United States and Australia have a social security agreement, also known as a Totalization Agreement, which entered into force on October 1, 2002. This agreement helps to regulate the relationship between the two countries with respect to social security benefits and coverage.
Under this agreement, individuals with Social Security work credits in the United States and periods of residence in Australia may be eligible for benefits from one or both countries. If an individual meets the basic requirements under one country's system, they will receive a regular benefit from that country. If they do not meet the basic requirements, the agreement may still help them qualify for a partial benefit based on both countries' credits.
Additionally, the agreement allows individuals to combine periods of residence in Australia with periods of contributions in the United States to meet any minimum residence or contribution periods required to qualify for a pension. This agreement also helps individuals avoid dual Social Security taxes in both countries.
It's important to note that the benefit provisions of the agreement do not apply to Australia's Superannuation Guarantee (SG) legislation, and benefits arising from SG contributions are not included. To qualify for Australian benefits, individuals typically must have resided in Australia for a minimum period and meet income and asset requirements.
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Bilateral agreements
Australia has bilateral social security agreements with several countries. These agreements are international social security agreements or treaties that allow countries to share responsibility and close gaps in social security coverage for individuals who migrate between the countries. They help people access certain pensions from Australia and/or the agreement country that they may not otherwise be able to access. For instance, they allow individuals to lodge a claim for a pension from either country, regardless of their current country of residence. They can also help meet the minimum periods required to qualify for a payment.
Australia has bilateral agreements with countries in Asia, Europe, and the Americas. Specifically, Australia has an agreement with New Zealand to share responsibility for social security coverage. Australia also has a social security agreement with the United States, which entered into force on October 1, 2002. This agreement regulates the relationship between the two countries concerning social security benefits and coverage. It allows for the payment of benefits, pensions, or allowances provided for in the laws of each country. For example, a "carer payment" in relation to Australia refers to a payment made to the partner of a person receiving an Australian benefit.
Bilateral social security agreements also deal with the issue of 'double super coverage'. This occurs when an employer sends an employee to work temporarily in another country and is required to pay superannuation (or its equivalent) in both countries. These agreements allow employers to apply for a certificate of coverage, which exempts them from paying super in the other country. The super guarantee contributions are then only required under the law of the country in which the employee is most likely to retire.
It is important to note that negotiations for social security agreements can take years to complete. For example, Australia had been negotiating with Sweden since February 2025. Additionally, agreements can be terminated, such as the agreement between Australia and the United Kingdom, which ended on March 1, 2001, due to a dispute over the indexation of UK pensions in Australia.
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Australia and New Zealand
The agreement between Australia and New Zealand dates back to 1948, with the last agreement signed in 2001. In 2017, a revised agreement came into force to keep up with changes in law and terminology and address some anomalies. For example, the agreement now allows same-sex de facto or civil union couples to receive a married rate of payment. Additionally, New Zealand can now determine whether people are residents in Australia for the purposes of assessing eligibility for New Zealand benefits.
It is important to note that the agreements do not cover short-term benefits, such as unemployment and sickness-related benefits for New Zealanders in Australia. They also do not address the issues arising from changes to Australian immigration legislation.
Australia also has social security agreements with several other countries, including the United States, the United Kingdom (until 2001), and Sweden (announced in 2025). These agreements help individuals access certain pensions and benefits that they may not otherwise be able to access by allowing them to lodge claims for pensions from either country, regardless of their residence.
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Australia and Sweden
Australia has agreements with several countries to share responsibility for social security coverage. These agreements allow individuals to access certain pensions and benefits from Australia and/or the agreement country that they may not otherwise be able to access.
The agreement will benefit individuals by allowing them to receive benefits, such as pensions, across borders. This will provide greater flexibility, particularly for those working and moving between the two countries, including during retirement.
Businesses will also benefit from the agreement, as they will not have to pay double contributions for seconded employees. This will foster even closer cooperation between the countries, enhancing their well-developed relationship.
Almost 12,000 Swedes live in Australia, while 5,300 Australians reside in Sweden. Additionally, Australia is one of Sweden's largest export markets outside of Europe, further underscoring the significance of their bilateral ties.
The social security agreement between Australia and Sweden will come into effect once both countries have approved it and completed all necessary processes, which can take several years.
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Australia and the UK
Australia has international social security agreements with several countries, including the United States and New Zealand. These agreements are bilateral treaties that allow countries to share responsibility and close gaps in social security coverage for individuals who migrate between the countries. They help individuals access certain pensions and benefits from Australia and/or the agreement country that they may not otherwise be able to access. For example, under these agreements, individuals may be able to claim Centrelink payments if they live in Australia but are visiting an agreement country or if they live in an agreement country but are visiting Australia.
Previously, Australia had a social security agreement with the United Kingdom (UK). However, this agreement ended on March 1, 2001, due to the UK's policy of not indexing UK pensions in Australia. Despite efforts from successive Australian governments, the issue has not been resolved, and the agreement has not been reinstated.
The social security agreements between Australia and other countries, like the one previously held with the UK, are designed to facilitate the movement of individuals between the countries. These agreements allow individuals to claim social security payments in Australia or the other country, helping them meet the minimum requirements for qualification. They also help prevent double payment of superannuation or "double super coverage," which can occur when an employer sends an employee to work temporarily in another country.
Australia's social security agreements with countries like the US and New Zealand demonstrate a commitment to supporting individuals who migrate between these nations. While the agreement with the UK has ceased, it is worth noting that Australia has actively pursued agreements with multiple countries to ensure social security coverage for its citizens and residents, regardless of their location.
Overall, Australia's social security agreements reflect a recognition of the increasingly global nature of work and retirement, aiming to protect individuals' access to social security benefits and pensions, regardless of their migration status. These agreements ensure that individuals are not disadvantaged due to their decision to live, work, or retire in another country.
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Frequently asked questions
Australia has social security agreements with several countries, including the United States, New Zealand, and the United Kingdom (until March 2001). Australia is also in negotiations with Sweden as of February 2025.
Australia's social security agreements aim to share responsibility and close gaps in social security coverage for individuals migrating between countries. They allow individuals to claim payments and pensions from either Australia or the agreement country, regardless of their residence. These agreements also help meet minimum residence or contribution periods required for pension eligibility.
Australia's social security agreements benefit individuals migrating between countries by ensuring they have access to necessary social security coverage. Additionally, these agreements assist employers by addressing the issue of ''double super coverage' when sending employees to work temporarily overseas.
