Explanatory Statement

Issued by the Authority of the Minister for Family and Community Services

EXPLANATORY STATEMENT

Subsection 8(1) of the Act provides that a Schedule setting out the terms of an agreement between Australia and another country, if the agreement relates to reciprocity in social security matters, may be added by regulations.

Section 25 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

The purpose of the Amendment Regulations is to replace the existing Schedule 9 (the Agreement on Social Security between Australia and the Republic of Portugal done at Lisbon on 30 April 1991) of the Act with a new Schedule 9 (the Agreement on Social Security between Australia and the Republic of Portugal done at Lisbon on 3 September 2001) (Social Security (International Agreements) Act 1999 Amendment Regulations 2001 (No. 2));

The Agreement on Social Security between Australia and the Republic of Portugal coordinates the social security schemes of the countries to give better welfare protection for people who move between Australia and Portugal.

Significant changes have occurred in the social security systems of Australia and the Republic of Portugal since the original Agreement was signed. The revised Agreement updates the bilateral arrangements between the countries to provide for these changes. The Agreement with Portugal also includes provisions modifying Australia's Superannuation Guarantee arrangements to avoid double coverage of Portuguese employees seconded to work temporarily in Australia. Reciprocal exemptions are provided for Australian workers sent temporarily to Portugal.

The Agreement on Social Security between Australia and the Republic of Portugal was signed on 3 September 2001 by Ms Janet Gardiner, Australia's Ambassador to Portugal and Mr Jose Simoes de Almeida, Secretary of State for Solidarity and Social Security.

Article 32 of the Agreement on Social Security between Australia and the Republic of Portugal provides for the entry into force of the Agreement. The Agreement will enter into force on the first day of the second month following an exchange of notes between Australia and the Republic of Portugal through the diplomatic channel notifying each other that all constitutional and legislative matters as are necessary to give effect to the Agreement have been finalised. The Regulations specify that the commencement date is 1 January 2002. This will enable the Regulations to be tabled in both Houses of the Parliament and for the period of disallowance of the Regulations to pass before the exchange of notes takes place. The exchange of notes must be completed by or on 30 November 2001.