Main Contents of the Social Security Agreement Between Korea and Australia
History of the Agreement with Australia
- Aug. 2003 : Held a presentation meeting on the Korean-Australian Pension System (Negotiated a social security agreement between Korea and Australia)
- May. 2005 : Held the first round of Negotiation Meetings for the Agreement in Australia
- Mar. 2006 : Held the second round of Negotiation Meetings for the Agreement in Korea
- Sep. 2006 : Held the third round of Negotiation Meetings for the Agreement in Australia
- Dec. 2006 : Signed the Agreement on Social Security between Korea and Australia
- May. 2007 : Provided a written notification to Australia that Korea has complied with all requirements for entry into force of this Agreement
- Jul. 2007 : Held negotiation Meetings for the Administrative Arrangement of the Agreement in Korea
- Dec. 2007 : Signed the Administrative Arrangement of the Agreement
- Jul. 2008 : Received a written notification from Australia that Australia has complied with all requirements for entry into force of this Agreement
- Oct. 2008 : Social Security Agreement between Korea and Australia entered into force
Applicable Legislation
- With respect to Korea,
(1) the National Pension Act and enforcement rules and regulations thereof; and
(2) with regard to benefits under the Agreement, the provisions of the legislation concerning old-age pension and lump-sum refund - With respect to Australia,
(1) the Acts forming the social security law in so far as the law provides for, applies to or affects, age pension (☞ they apply to the provisions concerning benefits); and
(2) the law concerning the superannuation guarantee: the Superannuation Guarantee (Administration) Act 1992, the Superannuation Guarantee Charge Act 1992 and the Superannuation Guarantee (Administration) Regulations. (☞ it applies to the provisions concerning exemption of contributions)
Personal Scope of this Agreement
- This Agreement applies to any person who is or has been subject to the National Pension Act of Korea and, where applicable, to other persons in regard to the rights derived from the person described above. Therefore, this agreement may also apply to a stateless person, refugee and a national of a third state as well as nationals of both contracting countries if they are or have been subject to the law concerning National Pension Scheme.
=> A person who is subject to the National Pension Act means the person has insured period under the National Pension Scheme. - This Agreement applies to any person who is or has been an Australian resident and, where applicable, to other persons in regard to the rights derived from the person described above. Therefore, this agreement may also apply to a stateless person, refugee and a national of a third state as well as nationals of both contracting countries if they are or have been Australian residents.
=> A person who is an Australian resident means the person who has citizenship or the right of permanent residence and actually resides in Australia. - ※ For more information, you may refer to the section Text of Agreement
Exemption from Dual Coverage
- ※ Provisions concerning exemption from dual coverage regulate on the payment of Korean National Pension contributions and Australian Superannuation Guarantee contributions.
- ① In general, an employee is subject to the legislation of a contracting country in which he/she is employed.
② A person who resides in Korea and is engaged in self-employment in Korea and Australia is subject to the Korean National Pension Scheme
⇒ Australian Superannuation Guarantee doesn't mandatorily cover an self-employed person. Therefore, a person who resides in Australia and is engaged in self-employment in Australia can choose to be covered under the Superannuation Guarantee program or not.
③ A detached worker is exempt from being covered under the legislation of the country which he/she is sent to for less than 5 years if he/she is covered under the legislation of his/her home country.
* In the case that agencies of both contracting countries agree on, exemption period may be extended. - ※ For more information, you may refer to the section Agreement or Guide for Exemption Application.
※ However, note that if you are exempt from coverage, you won't be entitled to any pension benefits.
[ Countries that employees and the self-employed pay their contributions to ]
| Type | Work Status | Coverage |
|---|---|---|
| Employee | You are working in Australia | |
| - for an employer in Australia who hired you | Australia | |
| - for an employer in Korea who sent you to work in Australia for less than 5 years(those periods can be extended based on mutual agreement between two countries) | Korea | |
| - for an employer in Korea who sent you to work in Australia for more than 5 years without extension of detached period | Australia | |
| You are working in Korea | ||
| - for an employer in Korea who hired you | Korea | |
| - for an employer in Australia who sent you to work in Korea for less than 5 years (those periods can be extended based on both countries' agreement) | Australia | |
| - for an employer in Australia who sent you to work in Korea for more than 5 years without extension of detached period | Korea | |
| Self-employed | You are Self-employed in Australia and you | |
| - reside only in Korea | Korea | |
| - reside only in Australia | Australia(Voluntary basis) | |
| - reside in Korea as well as in Australia | Korea | |
| You are Self-employed in Korea and you | ||
| - reside only in Australia | Australia(Voluntary basis) | |
| - reside only in Korea | Korea | |
| - reside in Korea as well as in Australia | Korea |
Benefits under this Agreement
- ※ With regard to benefits under the Agreement, in Korea, National Pension coverage shall be taken into account, while in Australia, a period of residence under the social security system shall be considered.
- Even though your periods of coverage in one country are not sufficient to qualify for old-age pension benefits, you may be eligible for old-age pension benefits after this Agreement has entered into force. This is possible due to totalization of coverage in both countries.
- ① Korean National Pension Old-age Pension Benefits under the Social Security Agreement
- - If you have more than 12 months of insured period in Korea but do not have enough periods of coverage (more than 10 years) to qualify for old-age pension benefits under the Korean National Pension Scheme, you may be able to qualify for Korean old-age pension benefits by totalizing periods of coverage under the Korean pension system and periods of Australian working life residence. However, those periods of Australian working life residence creditable must not coincide with the periods under the legislation of Korea.
- * In this case, a period of Australian working life residence means a period during which a person is employed or self-employed during periods of Australian working life residence under the Australian legislation which is between 16 and pensionable age for an old-age pension.
- - Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the benefits amount (Theoretical Benefit). The benefits amount (Theoretical Benefit) is calculated based on the totalized periods in both countries.
- ② Australian Old-age Pension Benefits under the Social Security Agreement
- - If you have been an Australian resident for less than 10 years but had one continuous residency period of more than 5 years, you may be able to qualify for Australian old-age pension benefits by totalizing periods of Australian residence and periods of coverage under the Korean National Pension Scheme. However, those periods creditable under the Korean pension system must not coincide with the periods of Australian residence; or
- - If you have been an Australian resident for less than 10 years and doesn't have any continuous residency period of more than 5 years, you may be able to qualify for Australian old-age pension benefits by totalizing periods of Australian residence and periods of coverage of more than 5 years under the Korean National Pension Scheme. However, those periods creditable under the Korean pension system must not coincide with the periods of Australian residence; and
- - Your old-age pension benefit is calculated by taking into account of periods of Australian residence, country of residence, income and property and other pension benefit amount, etc.
- * If you apply for the benefits in another country rather than Australia, you must have more than 12 months of periods of Australian working life residence (at least 6 months of continuous period).
- * In this case, a period of Australian residence means that a period during which you who has citizenship or the right of permanent residence actually reside in Australia, a period of Australian working life residence means a period of residence between 16 and pensionable age for an old-age pension under the Australian legislation regardless of being engaged in income-earning activities.
- ③ A person to whom this Agreement applies is treated equally by a contracting party in the application of its legislation regarding eligibility for and payment of benefits.
- ④ Korean lump-sum refunds are granted to Australian nationals based on the Agreement. However, lump-sum refunds can be paid to nationals of a third State only in accordance with the reciprocity principle under the National Pension Act.
- ⑤ There is no lump-sum refund system under the Australian social security, and as such any lump-sum refund will not be granted to Korean nationals under this Agreement.
- ⇔ However, regardless of this Agreement, a pension benefit can be paid in a lump-sum under the Superannuation Guarantee of Australia.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
- You may confirm any details with Centrelink International Services of Australia
(www.centrelink.gov.au)
Agencies of this Agreement
- As regards Korea,
- (1) National Pension Service (NPS)
- As regards Australia,
- (1) Regarding Exemption of Contributions,
Australian Taxation Office - (2) Regarding Benefits Application,
Centrelink International Services
