Introduction to the New Social Security Agreement with Japan
On 27 February 2007 the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP, and the Japanese Ambassador to Australia, His Excellency Mr Hideaki Ueda, signed a Social Security Agreement between Australia and Japan.
The Agreement cannot come into force until the necessary treaty and legislative processes are completed in both countries. At this stage, it is expected to come into effect from 1 January 2009.
Under the Agreement, Australia and Japan will contribute fairly to the support of people who have spent part of their working lives in both countries. People will be able to move between Australia and Japan knowing that their pension rights are recognised in both countries. Generally speaking, people living in either country will be able to add periods of employment in Australia to insurance periods in Japan in order to qualify for pensions from either or both countries.
The Agreement covers the Australian and Japanese age pension. Once the Agreement comes into effect, former residents of Australia will be able to claim Australian age pensions without leaving Japan, and people who worked in Japan now living in Australia will be able to lodge claims (at Centrelink offices) for Japanese pensions covered by the Agreement.
The Agreement also includes provisions covering Australia's Superannuation Guarantee scheme, similar to those included in Australia's recently implemented agreements with Belgium, Chile, Croatia, Ireland, the Netherlands, Portugal, Norway and the USA. These provisions will eliminate the need for contributions into both countries' systems in respect of the same work when Australians are sent to work temporarily in Japan, or when Japanese workers are sent to work in Australia temporarily. The Australian Taxation Office will administer these provisions and any enquiries about them should be directed to the ATO on 13 1020.