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Social Security Agreement Between India And Australia

October 8, 2021

Under certain conditions, a coC, usually valid for a maximum period of five years, can be purchased by employees serving between the two countries. If coverage is required for a period of more than five years, an extension of the CoC may be requested in writing and must be approved by the relevant competent authorities. The written application should include the reasons why the posted employment exceeds the five-year period. 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. 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. With respect to Indian law, this Agreement applies to the relevant Indian social security and pension laws.2 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. I am a non-resident Indian who has been living in Australia for six years, and I plan to work now.

I would like to know what the impact of India`s social security pact with Australia will be on my employment status here. This Flash Alert MSG reports on the bilateral social security agreement between Australia and India, which entered into force on 1 January 2016. Full board, subject to income and wealth tests, must be paid to a 45-year-old Australian Working Life Residence (AWLR). AWLR is the Australian period of residence between the age of 16 and the age of the old age pension. For example, a person who has lived in Australia between the ages of 30 and 50 has 20 years of Australian working life and can receive 20/45 of a need-dependent Australian old-age pension in India after retirement age. With regard to future posting agreements between Australia and India, companies should review their existing posting policies and processes in order to avoid, where appropriate, double pension contributions in Australia and India. Because you reside in Canada, your income may also be taxable in Canada. In such a case, you can claim a double taxation exemption of the same income through defined benefits in the Double Taxation Convention (DBAA) between India and Canada. If you will be receiving an Australian pension and may be entitled to a foreign pension, Australian social security legislation requires that you have appropriate steps to apply for it. This is because Australia`s pension system is not based on contributions but is funded by general tax revenues, and the government believes that all pensioners should maximise their private income before calling for the tax-funded appeal for help.

Bill is sent by his Australian employer to work in India for two years. Bill will continue to be covered by Australia`s superguarantee legislation as well as Indian laws while they work in India – hence double super coverage…


Shez