A new agreement abolishes double superannuation coverage for seconded employees working in Australia and Germany.
Double superannuation coverage affecting employees who work in Australia and Germany will be eliminated under a new agreement, Minister for Superannuation and Corporate Law Senator Nick Sherry announced.
Australia and Germany already have a social security agreement which helps people get pensions from both countries.
The new supplementary agreement, which comes into effect on October 1, will mean compulsory superannuation and social security contributions will no longer be made into both countries' systems, when an employee is temporarily sent to work in the other country.
"Generally, seconded workers from Germany will continue to contribute to, and be covered by, the German social security system and will not be subject to Australia's Superannuation Guarantee," Senator Sherry said.
"Similarly, Australian workers seconded to Germany will remain subject to Australia's Superannuation Guarantee and contributions will not be required by the German social security system."
The agreement will improve economic links with one of Australia's major trading partners, by reducing costs for businesses operating in Australia and Germany.
Double coverage arises where an employee is sent from one country to work temporarily in another, and the employer and the employee are required to pay superannuation or social security contributions in both countries.
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