Social Security (International Agreements) Act 1999 Amendment Regulations 2006 (No. 1)1
Select Legislative Instrument 2006 No. 149
I, PHILIP MICHAEL JEFFERY, Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Social Security (International Agreements) Act 1999.
Dated 22 June 2006
P. M. JEFFERY
Governor‑General
By His Excellency’s Command
MAL BROUGH
Minister for Families, Community Services and Indigenous Affairs
1 Name of Regulations
These Regulations are the Social Security (International Agreements) Act 1999 Amendment Regulations 2006 (No. 1).
2 Commencement
These Regulations commence on the day on which the Agreement between the Government of Australia and the Government of the Kingdom of Norway on Social Security (being the Agreement of that name done at Canberra on 2 December 2005) enters into force for Australia.
3 Amendment of Social Security (International Agreements) Act 1999
Schedule 1 amends the Social Security (International Agreements) Act 1999.
Schedule 1 Amendment
(regulation 3)
[1] After Schedule 18
insert
Schedule 19—Norway
Note: See section 5.
AGREEMENT BETWEEN THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE KINGDOM OF NORWAY ON SOCIAL SECURITY
The Government of Australia and the Government of the Kingdom of Norway and (hereinafter “the Parties”)
Wishing to strengthen the existing friendly relations between the two countries, and
Resolved to coordinate their social security systems and to eliminate double coverage for workers;
Have agreed as follows:
PART I
GENERAL PROVISIONS
ARTICLE 1
Definitions
(a) “benefit” means in relation to a Party, a benefit, pension or allowance for which provision is made in the legislation of that Party, and includes any additional amount, increase or supplement that is payable in addition to that pension, benefit or allowance to or in respect of a person who qualifies for that additional pension, benefit or allowance under the legislation of that Party but, for Australia, does not include any benefit, payment or entitlement under the law concerning the superannuation guarantee;
(b) “Competent Authority” means;
in relation to Australia:
the Secretary of the Commonwealth Department responsible for the legislation specified in subparagraph 1(a)(i) of Article 2 except in relation to the application of Part II Section A of the Agreement (including the application of other Parts of the Agreement as they affect the application of that Part) where it means the Commissioner of Taxation or an authorised representative of the Commissioner; and
in relation to Norway:
the Ministry of Labour and Social Affairs, except in relation to exception agreements in accordance with Article 11, where it means the National Insurance Administration;
(c) “Competent Institution” means;
in relation to Australia:
the institution which has the task of implementing the applicable Australian legislation; and
in relation to Norway:
the National Insurance Administration;
(d) “legislation” means;
in relation to Australia:
the laws specified in subparagraph 1(a)(i) of Article 2 except in relation to the application of Part II Section A of the Agreement (including the application of other Parts of the Agreement as they affect the application of that Part) where it means the laws specified in subparagraph 1(a)(ii) of Article 2; and
in relation to Norway:
the laws specified in subparagraph 1(b) of Article 2;
(e) “period of Australian working life residence”, in relation to a person, means a period defined as such in Australian legislation, but does not include any period deemed pursuant to Article 16 to be a period in which that person was an Australian resident;
(f) “period of insurance in Norway” means the period of contributions or period of residence according to Norwegian legislation;
(g) “territory” means;
in relation to Australia:
the Commonwealth of Australia, including the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island; and
in relation to Norway:
the territory of the Kingdom of Norway, including Svalbard and Jan Mayen.
2. Other words and expressions which are used in this Agreement shall have the meaning respectively assigned to them in the legislation applied.
ARTICLE 2
Legislative Scope
(a) in relation to Australia:
(i) the Acts forming the social security law, in so far as the law provides for, applies to, or affects the following benefits:
A age pension; and
B disability support pension.
(ii) the law concerning the superannuation guarantee (which at the time of signature of this Agreement is contained in the Superannuation Guarantee (Administration) Act 1992, the Superannuation Guarantee Charge Act 1992 and the Superannuation Guarantee (Administration) Regulations);
(b) in relation to Norway:
(i) the National Insurance Act of 28 February 1997 in so far as the Act provides for, applies to, or affects the following benefits:
A old‑age pension, including supplements for supported wife or children;
B disability pension, including supplements for supported wife or children;
C rehabilitation benefits: and
D pensions to survivors;
(ii) for the application of Part II also all other provisions of the Act mentioned above and the Family Allowance Act of 8 March 2002.
2. For the purposes of reciprocating Norwegian supplements for supported children, Australian age and disability support pension shall include additional child amounts for dependent children, if applicable, when payable outside Australia under this Agreement.
3. Notwithstanding the provisions of paragraph 1, the legislation as defined shall not, unless otherwise provided, include any agreement on social security concluded by either Party with another state.
4. This Agreement shall apply to laws which extend the legislation of either Party to new categories of beneficiaries only if the two Parties so agree.
ARTICLE 3
Personal Scope
This Agreement shall apply to any person who:
(a) is or has been an Australian resident; or
(b) is or has been subject to Norwegian legislation,
and, where applicable, to other persons in regard to the rights they derive from the persons described above.
ARTICLE 4
Equality of Treatment
ARTICLE 5
Payment of Benefits Abroad
(a) one year of occupational activity in Norway, or
(b) three years of residence in Norway
prior to the contingency and within the age limits which apply for pension earning in Norway.
PART II
COVERAGE PROVISIONS
SECTION A
PROVISIONS RELATING TO THE SUPERANNUATION GUARANTEE LEGISLATION OF AUSTRALIA EXCLUSIVELY AND TO NORWEGIAN LEGISLATION
ARTICLE 6
Purpose of the Section
The purpose of this section is to ensure that employers and employees who are subject to the legislation of Norway or Australia do not have a double liability under the legislation of Norway and Australia, in respect of the same work of an employee.
ARTICLE 7
Application of the Section
This Section shall only apply if an employee and/or the employer of the employee would, apart from this Section, be subject to the legislation of both Parties in respect of work of the employee or remuneration paid for the work.
ARTICLE 8
Diplomatic and Consular Relations
This Agreement shall not affect the provisions of the Vienna Convention on Diplomatic Relations of April 18, 1961, or of the Vienna Convention on Consular Relations of April 24, 1963.
ARTICLE 9
Avoidance of Double Coverage
(a) is covered by the legislation of one Party (‘the first Party’);
(b) was sent, whether before, on or after the entry into force of this Agreement, by the Government of the first Party to work in the territory of the other Party (‘the second Party’);
(c) is working in the territory of the second Party in the employment of the Government of the first Party; and
(d) is not working permanently in the territory of the second Party;
the employer of the employee and employee shall be subject only to the legislation of the first Party in respect of the work performed after entry into force of this Agreement and the remuneration paid for that work.
3. If an employee:
(a) is covered by the legislation of one Party (‘the first Party’) and in the case of Norway, is on a Norwegian payroll as determined by Norwegian legislation;
(b) was sent, whether before, on or after the entry into force of this Agreement, by an employer who is subject to the legislation of the first Party to work in the territory of the other Party (‘the second Party’);
(c) is working in the territory of the second Party in the employment of the employer or a related entity of that employer;
(d) has not been in the territory of the second Party more than 3 years after being sent to work on that territory by the employer; and
(e) is not working permanently in the territory of the second Party;
the employer of the employee and employee shall be subject only to the legislation of the first Party in respect of the work performed after entry into force of this Agreement and the remuneration paid for that work.
4. For the purposes of subparagraph 9(3)(c), an entity is a related entity of an employer if the entity and the employer are members of the same wholly or majority owned group.
5. Employees on board vessels flying the Norwegian flag shall be subject to Norwegian legislation, as applied. However, if the employee is an Australian resident working for an Australian resident employer, then Australian legislation shall also apply. Exceptions to avoid double coverage may be made under Article 11.
6. Employees working for a Norwegian airline company on board an aircraft in international traffic shall be subject to Norwegian legislation as applied. An employee who is employed by an Australian resident employer as a member of the crew of an aircraft in international traffic shall, in respect of that employment and the remuneration paid for that employment, be subject only to the legislation of Australia if the employee is an Australian resident.
ARTICLE 10
Employees on the Continental Shelf
ARTICLE 11
Exception agreements
(a) extend the period of three years referred to in Article 9(3)(d) for any employee; or
(b) provide that an employee is taken to work in the territory of a particular Party or to work on a ship or aircraft in international traffic under the legislation of a particular Party and is covered only by the legislation of that Party.
2. Any agreement made under paragraph 1 may apply to:
(a) a class of employees; and/or
(b) particular work or particular type of work (including work that has not occurred at the time the agreement is made).
ARTICLE 12
Voluntary Insurance
This Agreement shall not preclude the opportunity for a person to be voluntarily insured under the Norwegian National Insurance Scheme.
SECTION B
PROVISIONS RELATING TO AUSTRALIAN LEGISLATION, THE SUPERANNUATION GUARANTEE LEGISLATION OF AUSTRALIA EXCLUDED, AND TO NORWEGIAN LEGISLATION
ARTICLE 13
Temporary Absence from Australia
An Australian resident shall not cease to be regarded as an Australian resident because he or she is staying temporarily in Norway for any reason.
ARTICLE 14
Spouse or Partner and Dependants of Employees
PART III
PROVISIONS RELATING TO AUSTRALIAN BENEFITS
ARTICLE 15
Residence or Presence in Norway
1. Where a person would be qualified under Australian legislation or by virtue of this Agreement for a benefit except for not being an Australian resident and in Australia on the date on which the claim for that benefit is lodged, but:
(a) is an Australian resident or residing in the territory of Norway; and
(b) is in Australia, or the territory of Norway,
that person, so long as he or she has been an Australian resident at some time, shall be deemed, for the purposes of lodging that claim, to be an Australian resident and in Australia on that date.
2. Australian legislation which provides for, applies to or affects disability support pension for a person who is not severely disabled shall not be affected by paragraph 1.
ARTICLE 16
Totalisation for Australia
(a) a period as an Australian resident that is less than the period required to qualify that person, on that ground, under Australian legislation, for a benefit; and
(b) a period of Australian working life residence equal to or greater than the minimum period identified in accordance with paragraph 4; and
(c) a period of insurance in Norway
then that period of insurance shall be deemed, only for the purposes of meeting any minimum qualifying periods for that benefit set out in Australian legislation, to be a period in which that person was an Australian resident.
2. For the purposes of paragraph 1, where a person:
(a) has been an Australian resident for a continuous period which is less than the minimum continuous period required by Australian legislation, for entitlement of that person to a benefit; and
(b) has accumulated a period of insurance in Norway in two or more separate periods that equals or exceeds in total the period referred to in subparagraph (a),
the total of the periods of insurance shall be deemed to be one continuous period.
3. For all purposes of this Article, where a period by a person as an Australian resident and a period of insurance in Norway coincide, the periods of coincidence shall be taken into account once only by Australia.
4. The minimum period of Australian working life residence to be taken into account for the purposes of paragraph 1 shall be as follows:
(a) for the purposes of an Australian benefit that is payable to a person who is not an Australian resident, the minimum period required shall be 12 months, of which at least 6 months must be continuous; and
(b) for the purposes of an Australian benefit that is payable to an Australian resident, there will be no minimum period.
ARTICLE 17
Calculation of Australian Benefits
(a) Norwegian War Injury Pensions (NWIPs) paid to the partner of an Australian pensioner, if that partner does not receive, or is not entitled to receive a pension payable under the Social Security Act 1991 or a service pension payable under the Veteran’s Entitlement Act 1986; and
(b) allowances paid to NWIP pensioners, for specific costs, as specified in the Administrative Arrangement made pursuant to Article 29.
3. Subject to paragraph 5, where an Australian benefit is payable, whether by virtue of this Agreement or otherwise, to a person who is outside Australia, the rate of that benefit shall be determined according to Australian legislation. However, when assessing the income of that person for the purposes of calculating the rate of the Australian benefit, only a proportion of the assessable Norwegian benefit which is received by that person, and if applicable by that person’s partner, shall be regarded as income. That proportion shall be calculated by multiplying the number of whole months in that person’s period of Australian working life residence (not exceeding 300 months) by the amount of the assessable Norwegian benefit and dividing the product by 300.
4. The provisions of paragraphs 1 and 3 shall continue to apply for 26 weeks where a person comes temporarily to Australia.
5. A person referred to in paragraph 3 shall only be entitled to receive the concessional assessment of income described in that paragraph for any period during which the rate of that person’s Australian benefit is proportionalised under Australian legislation.
6. Subject to the provisions of paragraph 8, where an Australian benefit is payable only by virtue of this Agreement to a person who is in Australia, the rate of that benefit shall be determined by:
(a) calculating that person’s income according to Australian legislation, but disregarding in that calculation the Norwegian benefit received by that person, and, if applicable, by that person’s partner;
(b) deducting the amount of the Norwegian benefit received by that person from the maximum rate of that Australian benefit; and
(c) applying to the remaining benefit obtained under subparagraph (b) the relevant rate calculation set out in Australian legislation, using as the person’s income the amount calculated under subparagraph (a).
7. The provisions of paragraph 6 shall continue to apply for 26 weeks where a person departs temporarily from Australia.
8. If an Australian benefit is only payable by virtue of this Agreement to a person under paragraph 6 and the rate of the benefit calculated is less than the rate of the same benefit which would be payable under paragraph 3, the first‑mentioned rate shall be increased to the second‑mentioned rate.
9. Where a member of a couple is, or both that person and his or her partner are, in receipt of a Norwegian benefit or benefits, each of them shall be deemed, for the purpose of paragraph 6 and for Australian legislation, to be in receipt of one half of either the amount of that benefit or total of both of those benefits, as the case may be.
PART IV
PROVISIONS RELATING TO NORWEGIAN BENEFITS
ARTICLE 18
Totalisation for Norway
(a) one year of occupational activity in Norway; or
(b) three years residence in Norway
prior to the contingency and within the age limits which apply for pension earning under Norwegian legislation.
2. To become entitled to a supplementary pension under Norwegian legislation, pension points for at least one year must have been credited. In respect of such pensions, periods of Australian working life residence to be taken into account under the provisions of paragraph 1, shall be periods in which the person concerned was gainfully occupied in Australia.
3. In respect of entitlement to a pension as a surviving spouse or child, the periods to be totalised under paragraphs 1 and 2 shall be the deceased person’s periods as mentioned.
ARTICLE 19
Calculation of Norwegian Benefits
(a) determining the benefit which would have been payable if the person’s periods of Australian working life residence had been insurance periods in Norway, and
(b) multiplying the benefit arrived at under subparagraph (a) by the person’s actual insurance periods in Norway and dividing the product by the sum of the person’s insurance period in Norway and periods of Australian working life residence.
3. If the person’s total insurance period in Norway, or the sum of such periods and periods of Australian working life residence, exceeds 40 years, the actual period, or sum of periods, shall be replaced by the figure “40” for the purposes of paragraph 2.
4. For the purposes of paragraphs 2 and 3, the provisions of Article 18 paragraphs 2 and 3 shall apply correspondingly. A supplementary pension under paragraph 2 shall be calculated on the basis of the average annual pension point figure for the years during which the person concerned has been credited with pension points under Norwegian legislation. If the person has been credited with pension points for more than 20 years, the basis shall be the average figure for the 20 best years.
5. In respect of pensioners who are resident in Australia, Australian income tested benefits shall not be taken into account for the purpose of the income testing of supplements under Norwegian legislation for supported spouse and/or children
ARTICLE 20
Transitional Provisions
In respect of entitlement to a supplementary pension under Norwegian legislation calculated under the rules of a reduced pension earning requirement for persons born before 1937, only periods of residence in Norway before 1967 may be taken into account.
ARTICLE 21
Totalisation concerning Voluntary Membership
In order to meet the requirement of previous insurance periods for obtaining voluntary membership of the Norwegian social security scheme, periods of Australian working life residence shall be totalised with insurance periods under Norwegian legislation. The requirements for totalisation according to Article 18 paragraph 1 shall apply.
PART V
MISCELLANEOUS AND ADMINISTRATIVE PROVISIONS
ARTICLE 22
Implementation of the Secondment Provisions
A Party shall provide according to rules to be agreed in the Administrative Arrangement, pursuant to Article 29 of the Agreement, a document showing that a person is covered under Article 9.
ARTICLE 23
Lodgement of Documents
ARTICLE 24
Presentation of Claims
A claim for a benefit presented under the legislation of one Party will be considered as a claim for a similar benefit under the legislation of the other Party provided that the other Party receives this request within 6 months. This is not applicable if the applicant states or if it is otherwise evident that the claim shall only apply to a benefit under the legislation of the former Party.
ARTICLE 25
Determination of Claims
(a) a period as an Australian resident and a period of insurance; and
(b) any event or fact which is relevant to that entitlement,
shall, subject to this Agreement, be taken into account in so far as those periods or those events are applicable in regard to that person no matter when they were accumulated or occurred.
2. The commencement date for payment of a benefit payable by virtue of this Agreement shall be determined in accordance with the legislation of the Party concerned but shall never be earlier than the date on which this Agreement enters into force.
ARTICLE 26
Overpayment of Benefits
(a) a benefit is paid or payable by a Party to a person in respect of a past period;
(b) for all or part of that period, the other Party has paid to that person a benefit under its legislation; and
(c) the amount of the benefit paid by that other Party would have been reduced, had the other benefit been paid by the first Party during that period;
then
(d) the amount that would not have been paid by the other Party had the benefit described in subparagraph (a) been paid on a periodical basis throughout that past period, shall be a debt due by that person to the other Party.
2. Where the first Party has not yet paid the benefit described in subparagraph 1(a) to the person:
(a) that Party shall, at the request of the other Party, pay from the arrears of the benefit the amount necessary to meet the debt described in subparagraph 1(d) to the other Party and shall pay any excess to the person; and
(b) any shortfall may be recovered by the other Party in accordance with the legislation of that Party.
3. The Competent Institution receiving a request under paragraph 2 shall transfer from the lump sum arrears of its benefit the amount of the debt to the Competent Institution making the request.
4. A reference in paragraphs 1 and 2 to a benefit, in relation to Australia, means a pension, benefit or allowance that is payable under the social security laws of Australia and, in relation to Norway, means any pension, benefit or allowance payable under the National Insurance Act of 28 February 1997 of Norway.
5. A Party to which overpaid benefit is owing shall not, under this Article, seek to have the other Party recover those overpayments from continuing payments of benefit paid by the other Party.
ARTICLE 27
Export and Payment of Benefits
ARTICLE 28
Exchange of Information and Mutual Assistance
(a) communicate to each other any information necessary for the application of this Agreement;
(b) lend their good offices and furnish assistance to one another, including the communication to each other of any necessary information, with regard to the determination or payment of any benefit under this Agreement or under the social security laws of either Party as if the matter involved the application of their own legislation;
(c) communicate to each other, as soon as possible, all information about the measures taken by them for the application of this Agreement or about changes in their respective legislation in so far as these changes are relevant to the application of this Agreement; and
(d) at the request of one to the other, assist each other in relation to the implementation of agreements on social security entered into by either of the Parties with third States, to the extent and in the circumstances specified in the Administrative Arrangement made in accordance with Article 29.
2. The assistance referred to in paragraph 1 shall be provided free of charge, subject to the Administrative Arrangement made pursuant to Article 29.
3. Unless disclosure is required under the laws of a Party, any information about an individual which is transmitted in accordance with this Agreement to a Competent Authority or a Competent Institution of that Party by a Competent Institution of the other Party is confidential and shall be used only for purposes of implementing this Agreement and the social security laws of either Party.
4. In no case shall the provisions of paragraphs 1 and 3 be construed so as to impose on the Competent Authority or Competent Institution of a Party the obligation:
(a) to carry out administrative measures at variance with the laws or the administrative practice of that or the other Party; or
(b) to supply particulars which are not obtainable under the laws or in the normal course of the administration of that or of the other Party.
5. In the application of this Agreement, the Competent Authority and the Competent Institution of a Party may communicate with the other in their own official language.
ARTICLE 29
Administrative Arrangement
The Competent Authorities of the Parties shall make whatever Administrative Arrangement is necessary in order to implement this Agreement.
ARTICLE 30
Resolution of Difficulties
Disputes arising in connection with the application of this Agreement are to be resolved by consultation and negotiations between the Competent Authorities.
ARTICLE 31
Review of Agreement
Where a Party requests the other to meet to review this Agreement, the Parties shall meet for that purpose no later than 6 months after that request was made and, unless the Parties otherwise agree, their meeting shall be held in the territory of the Party to which that request was made.
PART VI
TRANSITIONAL AND FINAL PROVISIONS
ARTICLE 32
Entry into Force and Termination
(a) at the date of termination, are in receipt of benefits; or
(b) prior to the expiry of the period referred to in that paragraph, have lodged claims for, and would be entitled to receive, benefits, by virtue of this Agreement; or
(c) immediately before the date of termination are subject only to the legislation of one Party by virtue of paragraphs 2 or 3 of Article 9 of Part II of the Agreement, provided the employee continues to satisfy the criteria of those paragraphs.
IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.
DONE in 2 copies at Canberra on this second day of December two thousand and five in the English and Norwegian languages, each text being equally authoritative.
FOR THE GOVERNMENT OF AUSTRALIA | FOR THE GOVERNMENT OF THE KINGDOM OF NORWAY |
Hon. Kay Patterson Minister for Family and Community Services | HE Lars Wensell Ambassador |
Note
1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.frli.gov.au.