Senator the Hon. Mathias Cormann
Minister for Finance
Acting Assistant Treasurer
The Hon. Kevin Andrews MP
Minister for Social Services
Date: Tuesday, 18 November 2014
The Australian Government today signed a new social security agreement with the Indian Government which will make retirement easier for residents of both countries and help improve their retirement incomes.
“The Agreement will give former Australian residents now living in India the ability to claim the Australian Age Pension without having to return to Australia,” Minister for Social Services, Kevin Andrews said.
“It will also give former Indian residents living in Australia access to Indian retirement pensions.
“Around 100 former Australian residents in India are expected to benefit from the Agreement in its first year of operation.” Mr Andrews said.
Minister for Finance and Acting Assistant Treasurer, Senator Mathias Cormann said the Agreement will also facilitate improved economic links between our two countries.
“Businesses operating in Australia and India will benefit from the removal of the requirement for compulsory contributions to be paid into both countries' superannuation and pension insurance systems for temporarily seconded workers.
“An estimated 160 Australian businesses operating in India are expected to save around $10 million a year,” Minister Cormann said.
The Agreement is an important step in strengthening the significant bilateral relationship between Australia and India giving people more freedom to move between Australia and India, knowing their pension rights will be recognised and protected.
There are more than 290,000 people currently living in Australia who were born in India and make a substantial contribution to our community.
Subject to the completion of treaty, legal and administrative processes in both countries, the Agreement with India is expected to come into effect from July 2015.
For Minister Cormann: Karen Wu – 0428 350 139
For Minister Kevin Andrews: Cristy Elliott – 0407 463 670