Guide for Exemption Application under the Agreement between Korea-Australia

How to be Exempt from Australia Superannuation Guarantee

• If you are mandatorily covered by the Korean National Pension Scheme and detached to Australia, you can be exempt from Australian Superannuation Guarantee, provided that you get "a Certificate of Coverage under Social Security Agreement" from the National Pension Service of Korea and submit (show) it to the Australian Taxation Office.
  
  ※ However, note that when you are exempted from coverage, you will not be entitled to any pension benefits.
• 1. A request for a Korean Certificate of Coverage
  • If you are an employee, your employer in Korea must request "a Certificate of Coverage under Social Security Agreement"
  • If you are self-employed, you are not mandatorily covered under the Australian Superannuation Guarantee. Therefore, you do not need to get a Certificate of Coverage under Social Security Agreement.
• (1) Who requires a Korean Certificate of Coverage?
  • An employee who is sent to work in Australia within a certain period (5 years) by an employer
  • An employee who is sent to work in Australia by an employer within a certain period and the detached period is extended for a certain period (In this case, mutual agreement between two countries is needed)
  • Some workers or members of a crew on a ship or aircraft who can be exempt from Australian Superannuation Guarantee under this Agreement
• (2) How to request a Korean Certificate of Coverage?
  • The employer or self-employed person must request a Korean Certificate of Coverage by visiting the National Pension Service with the required documents or sending them to the National Pension Service.
  • National Pension Service, Center for International Affairs, 6^th Floor, Kukmin-Yeonkum Building, 180, Giji-Ro, Deokjin-Gu, Jeonju-Si, JEONBUK STATE, 54870, Korea
    - Fax (063)900-3404
• (3) Required Documents
  • When you request the Certificate, you must submit an "Application for Certificate of Coverage under Social Security Agreement" and documents to confirm the employee's detachment such as a Detachment Order.
  • "Application for Certificate of Coverage under Social Security Agreement" is available on our website -> Social Security Agreement -> Forms or you can get them by visiting NPS's regional office and by copying the form in the manual brochure at the NPS.
• 2. Submission or Presentation of Certificate of Coverage to the Australian Taxation Office
  • An employer who is responsible for paying pension contributions is exempt from paying contributions of Superannuation Guarantee for the period specified on a Korean Certificate of Coverage under Social Security Agreement by submitting or showing the Certificate to the Australian Taxation Office.
  • However, if a contributor has already paid contributions for the exempt period specified on a Certificate before submitting or showing it, he/she is able to request a refund according to the internal procedure of Australia. However, in some cases, there could be limitations on the period regarding retroactive exemptions or refunds, so we recommend that you request the exemption allowing a suitable amount of time.

How to be Exempt from Korean National Scheme

• If you are mandatorily covered by the Australian Superannuation Guarantee and detached to Korea, you can be exempted from Korean National Pension Scheme, provided that you get "a Certificate of Superannuation Guarantee Coverage under Social Security Agreement" from the Australian agency and submit it to the Korean National Pension Service.
• 1. A Request for an Australian Certificate of Coverage
  • If you are an employee, your employer in Australia must request "a Certificate of Superannuation Guarantee Coverage under Social Security Agreement".
  • If you are self-employed, you are not mandatorily covered under the Australian Superannuation Guarantee. However, since you are mandatorily covered under the Korean National Pension Scheme, you don't need to get a Certificate of Superannuation Guarantee Coverage under Social Security Agreement.
• (1) Who requires an Australian Certificate of Coverage?
  • An employee who is sent to work in Korea within a certain period (5 years) by an employer
  • An employee who is sent to work in Korea by an employer within a certain period and the detached period is extended for a certain period (In this case, mutual agreement between two countries is needed)
  • Some workers or members of a crew on a ship or aircraft who can be exempt from Korean National Pension Scheme under this Agreement
• (2) How to request an Australian Certificate of Coverage under the Social Security Agreement?
  • After contacting the Australia Agency by phone or fax, you must request a certificate with the required documents according to the agency's procedures.
• (3) Issuing Agency of the Australian Superannuation Guarantee Certificate of Coverage
  • Australian Taxation Office; ATO:

• 2. Submission of the Certificate of Coverage to the Korean National Pension Service
  • ① If you are a worker, your employer in Korea must submit an "application of exemption" as well as an original copy of "Australian Superannuation Guarantee Certificate of Coverage under Social Security Agreement", and a copy of your identification to the International Center or the regional office by visiting or by sending a registered letter (An original copy must be submitted, a facsimile will not be accepted).
  • ② If you submit an "Australian Superannuation Guarantee Certificate of Coverage under Social Security Agreement", you are exempt from Coverage under the Korean National Pension Scheme for the period shown on the same Certificate.
    If you have already paid contributions before you submit your certificate, the amount of the contributions already paid can be transferred to your due contributions or refunded. However, in accordance with the regulations of the National Pension Scheme, the right to request a refund of a over-collected amount becomes valid only up to 5 years from the day following the processing of a qualification change, therefore, we recommend that you request the exemption within the required period.
  • ※ Information here on our website is a general guide. You can get more information at the International Center of the NPS or any regional office of NPS.