EXPLANATORY STATEMENT

Issued by the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs

Subject:          Social Security (International Agreements) Act 1999

                        Social Security (International Agreements) Act 1999 Amendment Regulations 2011 (No. 1)

                        Commencement (Second Protocol to the Agreement between Australia and the Republic of Austria on Social Security) Instrument 2011

Paragraph 2(1)(b) of the Social Security (International Agreements) Act 1999 Amendment Regulations 2011 (No. 1) (the Amendment Regulations) provides for Schedule 1 to the Amendment Regulations to commence on a day fixed by legislative instrument made by the Minister.  That day is 1 January 2012.

The Amendment Regulations amend Schedule 10 of the Social Security (International Agreements) Act 1999 (the Act), relating to the existing Agreement between Australia and the Republic of Austria on Social Security (the Agreement) which entered into force on 1 December 1992, by inserting the Second Protocol to the Agreement (the Second Protocol) as new Part C of Schedule 10 to the Act immediately after Part B.

The Second Protocol provides, in accordance with the requirements of paragraph 1 of Article IV, for entry into force on the first day of the third month following the month in which the last of the notes are exchanged by the Parties through the diplomatic channel notifying each other that all matters as are necessary to give effect to the Second Protocol have been finalised.  The notification was completed on 17 October 2011.

Paragraph 2(2)(a) of the Amendment Regulations provides that the legislative instrument made for the purposes of commencing Schedule 1 is prescribed for the table in subsection 44(2) of the Legislative Instruments Act 2003 (the LIA), so that it is not subject to disallowance.

In addition, paragraph 2(2)(b) of the Amendment Regulations provides that the legislative instrument made for the purposes of commencing Schedule 1 is prescribed for the table in subsection 54(2) of the LIA, so that it is not subject to sunsetting.

These exemptions are appropriate given that the legislative instrument is similar in effect to a commencement Proclamation, which is exempt from disallowance and sunsetting under the LIA.

The commencement provision also satisfies the requirement in subsection 7(2) of the Act that the regulations when made must not come into operation on a day earlier than the day on which the amending agreement comes into force for Australia, and also satisfies paragraph 12(1)(c) of the LIA.

The legislative instrument specifying the commencement of the Agreement also ensures that the Federal Register of Legislative Instruments contains a complete record in relation to the commencement of Schedule 1 to the Amendment Regulations.

Consultation was unnecessary for this legislative instrument as this instrument is of a minor or machinery nature and does not substantially alter existing arrangements.  It has no direct, or indirect effect on business.