House debates
Thursday, 20 September 2007
Committees
Treaties Committee; Report
10:01 am
Andrew Southcott (Boothby, Liberal Party) Share this | Link to this | Hansard source
On behalf of the Joint Standing Committee on Treaties I present the committee’s report entitled Report 89: treaties tabled on 7 August 2007.
Ordered that the report be made a parliamentary paper.
by leave—Report 89 contains the committee’s findings on three treaty actions: a social security agreement with Japan, an agreement with the Philippines on the status of visiting forces and an agreement between Australia and the Hellenic Republic on social security. The committee found all three treaties to be in Australia’s national interest and has recommended that binding treaty action be taken.
The social security agreement between Australia and Japan will improve access to the age pension for people who have moved between Australia and Japan during their working life. Currently, Australian citizens who have worked in Japan and paid contributions into the Japanese pension system are only eligible for a refund of their contribution of up to three years. In other words, if you work in Japan and make contributions for 25 years, you would be eligible only for a limited refund of up to three years. Under the new agreement, Australian citizens will be given a choice of either taking the three-year refund or accepting a part-pension based on their years of contribution or a combination of both. This agreement is based on the principle that underpins Australia’s other bilateral social security agreements, namely the sharing of responsibility between the parties in providing adequate social security coverage for residents of both countries.
The committee also reviewed the status of the visiting forces agreement with the Philippines, a reciprocal document affording the same rights to Australian Defence Force personnel in the Philippines and armed forces of the Philippines personnel in Australia. The committee is supportive of increased defence cooperation with the Philippines, particularly in the areas of counterterrorism and maritime security contemplated by the agreement. The agreement will allow Australia and the Philippines to undertake joint exercises and provide an internationally recognised means to resolve any disputes that may arise from the presence of one country’s forces in the territory of the other.
The third treaty reviewed by the committee in this report, the social security agreement with the Hellenic Republic, will improve income support for people who have lived in Australia and Greece. Similar to the agreement with Japan, the agreement with Greece allows age pensioners who live in either country to claim their entitlement to pensions from both countries. The committee tabled its recommendations in relation to this agreement in Report 88 to allow implementation to proceed quickly. The agreement with Greece incorporates the key principle of shared responsibility for providing social security coverage for current and former residents of both countries. It should be noted, however, that the agreement has a unique formula for calculating the rate of the Australian age pension for those who live permanently in Greece. For the first time, many former Australian residents already living permanently in Greece without the Australian age pension will be able to claim the age pension upon commencement of the agreement. Under this formula, people currently residing in Greece without a pension may receive a different rate from those who return to Greece after the agreement commences operation. A formula such as this has not been used in any of Australia’s other bilateral social security agreements.
Finally, Report 89 also includes the committee’s decisions on the first treaties tabled in a new category, category 3. Category 3 treaties were established recently by the committee in cooperation with the government. They are non-substantive treaty actions—mainly minor and technical amendments to existing treaties—which do not impact significantly on the national interest. Category 3 treaty actions are tabled with a one-page explanatory statement and the committee has the discretion to formally inquire into these treaty actions or indicate its acceptance of them without a formal inquiry and report.
Report 89 lists, in appendix E, five category 3 treaty actions that the committee has resolved not to formally inquire into. The committee intends to continue to notify the parliament of its decisions on category 3 treaties in appendices to its future reports and through the committee’s website.
The committee supports the social security agreement with Japan, the status of the visiting forces agreement with the Philippines and the social security agreement with the Hellenic Republic. The committee recommends binding treaty action be taken in relation to all three agreements as quickly as possibly so that Australians who may access the provisions of the agreements once they have entered into force will have the opportunity to do so without delay.
I would like to thank all members of the Joint Standing Committee on Treaties, two of whom are here today—the member for Lyons and the member for Swan. During the last three years of this parliament there has always been a lot of work for the Treaties Committee. We have a regular number of treaties to inquire into. I would also like to particularly thank all members of the committee secretariat. They have been fantastic in the back-up they have given all members of the treaties committee. I would particularly like to thank the committee secretary, James Rees.
I commend the report to the House.
10:07 am
Kim Wilkie (Swan, Australian Labor Party) Share this | Link to this | Hansard source
by leave—Report 89 of the Joint Standing Committee on Treaties deals with three treaties: a social security agreement with Japan, an agreement with the Philippines on the status of visiting forces and an agreement between Australia and the Hellenic Republic on social security. I will comment briefly on each.
Australia already has social security agreements in place with 18 other countries. These are important agreements. As the chair of the committee has just stated, all are based on the principle of shared responsibility, which requires parties to provide adequate social security coverage for residents of both countries. The two social security agreements reviewed by the committee in this report also incorporate this principle.
The social security agreement between Australia and Japan will improve access to the age pension for people who have moved between Australia and Japan during their working life. The Department of Families, Community Services and Indigenous Affairs estimates that approximately 1,050 people residing in Australia and Japan will benefit when the agreement comes into force, in the first full year, by being able to claim payments from Australia and Japan to which they currently do not have access. Under the agreement, Australia will treat residents of Japan as Australian residents for the purposes of claiming and qualifying for an Australian pension. Periods of coverage in Japan will count as periods of residence in Australia.
The social security agreement with the Hellenic Republic will improve income support for people who have lived in Australia and Greece, allowing age pensioners who live in either country to claim a pension from either Australia or Greece. As honourable members will be aware, the Greek presence in Australia is large. In March 2007, the Australian government was paying the age pension to almost 57,000 Greek-born pensioners. As at 26 June 2007, there were more than 5,700 Australian residents of Greece, not necessarily Greek-born, receiving the Australian age pension. It is estimated that approximately 50,000 people residing in Australia and Greece will benefit under this agreement by being able to claim payments from Australia and Greece to which they currently do not have access.
For the first time, many former Australian residents already living permanently in Greece without the Australian age pension will be able to claim the age pension upon commencement of the agreement. The agreement will provide access to Australian and Greek retirement benefits and greater portability of these benefits between the two countries. Portability of benefits allows for the payment of a benefit from one country to another. Enhanced access to benefits is an underlying principle of bilateral social security agreements where the responsibility for providing benefits is shared. Under the agreement, residents of Australia and Greece will be able to move between Australia and Greece with the knowledge that their right to benefits is recognised in both countries.
Double coverage provisions are also included in the agreement to ensure that Australian and Greek employers do not need to make compulsory superannuation contributions into both countries’ systems when an employee is seconded to work in the other country temporarily. Under current arrangements, the employer would be required to make contributions under both Australian and Greek legislation. The agreement will provide that, generally, where compulsory contributions are required, the employer and the employee need to contribute only to the relevant superannuation scheme in their home country. At the same time, the agreement will mean many Greek-Australians living in Australia will be able to claim a Greek pension.
The committee also considered an agreement with the Philippines concerning the status of visiting forces. Under this agreement, Australian Defence Force personnel in the Philippines and armed forces of the Philippines personnel in Australia will be afforded the same rights. The agreement sets the legal framework, rights, responsibilities and procedures between the visiting forces and the host government on several matters, including what occurs in the event that a criminal act is committed by a member of the visiting force, the circumstances in which a uniform is worn, taxation and customs relief, environmental protection requirements, immigration procedures and liability issues. The agreement will not authorise either country to deploy troops or conduct operations in the other’s territory but will establish the status of such forces when Australia and the Philippines arrange to send and receive forces to the other country.
The committee has found all three of the treaties tabled on 7 August 2007 to be in Australia’s national interest and recommends that binding treaty action be taken. However, the committee tabled its recommendation in relation to the social security agreement with Greece in Report 88 to allow implementation to proceed as quickly as possible.
I also take this opportunity to thank James Rees and his staff in the secretariat for the magnificent work they have done for the committee over the last three years and prior to that time as well. They really have done an outstanding job in getting these treaties processed and brought before the parliament. I also thank other members of the committee, in particular the chair, Andrew Southcott, the member for Boothby. We have had a great working relationship and I look forward to that continuing in the future. Other members of the committee have also put in a magnificent effort in taking evidence and helping assist in the preparation of reports. I commend the report to the House.
10:13 am
Harry Jenkins (Scullin, Australian Labor Party) Share this | Link to this | Hansard source
I move:
That the House take note of the report.
In accordance with standing order 39(c), the debate is adjourned. The resumption of the debate will be made an order of the day for the next sitting.