TN 19 (05-22)

RS 02002.045 Certificates of Coverage and Letters of Exemption under the U.S. - Australian Agreement

A. Purpose of certificate of coverage

The U.S. - Australian Agreement requires each country to issue certificate of coverage forms for workers who, without the Agreement, would have to pay social security taxes to both countries on the same earnings. The certificate serves as proof that the worker named on the certificate is:

  • Subject to the social security taxation and coverage laws of the country issuing the certificate; and

  • Exempt from social security coverage and contributions on the same earnings in the other country.

B. Purpose of letter of exemption

Australia will not issue a certificate of coverage in situations involving the general rule for employment (RS 02002.010), the crews of ships and aircraft rule (RS 02002.020) or the self-employment rule (RS 02002.030). In those situations, the employer, employee or self-employed U.S. citizen residing in Australia must request a letter of exemption from the U.S. A letter of exemption issued by the Social Security Administration (SSA) certifies that the worker (and employer, if employed) named on the letter is:

  • Subject only to Australian taxation and coverage laws under the agreement, regardless of whether or not contributions must be made under Australian law; and

  • Exempt from U.S. Social Security and Medicare coverage and contributions on the same earnings in Australia.

C. Requesting a certificate of coverage or letter of exemption

1. U.S. Certificate of coverage or letter of exemption

Advise inquirers that to obtain a certificate of coverage or letter of exemption from the United States, the employee, employer or self-employed person should contact SSA at:

Social Security Administration
Office of Earnings and International Operations
Division of Training and Program Support
P.O. Box 17741
Baltimore, Maryland 21235-7741
SSA
Fax: (410) 966-1861
Request online: https://opts.ssa.gov

NOTE: This fax number is only for requesting U.S. certificates of coverage or letters of exemption stating that workers named in the letters are exempt from foreign social security coverage and taxation. IMPORTANT: If an employee requests the certificate or letter, we need to contact the employer to confirm the accuracy of the information provided.

2. Australian certificate of coverage

Advise inquirers that to obtain a certificate of coverage from Australia, they should write to:

Superannuation International Agreements
P.O. Box 3100
Penrith NSW 2740
AUSTRALIA

NOTE: Australia will issue certificates only in cases involving detached workers (RS 02002.015), government employees (RS 02002.025), or special exceptions (RS 02002.035). If a worker is subject to Australian law under another provision of the Agreement, Australia will not issue a certificate. In those cases, a letter of exemption must be obtained from SSA to document the exemption from U.S. Social Security and Medicare taxes.

D. Required information when making a request

Advise inquirers that when writing to obtain a certificate of coverage or letter of exemption, they should provide the following information:

  • Full name; and

  • Social Security number (U.S. number for U.S. certificate or letter and Australian number for Australian certificate); and

  • Country of citizenship; and

  • Date and place of birth; and

  • Country of permanent residence; and

  • Name and address of employer in both countries (if self-employed, address of trade or business in both countries); and

  • Date and place of hire by sending company, if employed; and

  • Beginning date and ending date (if known) of employment or self-employment in the other country.

    NOTE: If the worker will be an employee of an Australian affiliate of an American employer, the request must indicate whether the American employer has entered into an agreement with the Internal Revenue Service under Section 3121(l) of the Internal Revenue Code and, if so, the effective date of such an agreement.

E. Processing request for certificates of coverage

The responsible party will take the following actions when processing requests for certificates of coverages.

  1. 1. 

    The employee, employer or self-employed person writes to the appropriate authority requesting a certificate.

    NOTE: If an employee requests the certificate of coverage from the United States, OEIO will need to contact the employer to confirm the accuracy of the information provided.

  2. 2. 

    The agency issues the certificate, if appropriate.

  3. 3. 

    The issuing agency sends the original and one copy to the requester.

    NOTE: The employee, employer, or self-employed person must present the certificate to the tax authorities in the other country upon request.

F. Processing requests for letters of exemption

  1. 1. 

    The employee, employer or self-employed person writes to the SSA requesting a letter.

    NOTE: If an employee requests the letter of exemption from the United States, OEIO will need to contact the employer to confirm the accuracy of the information provided.

  2. 2. 

    The Social Security Administration issues the letter, if appropriate.

  3. 3. 

    The employee, employer, or self-employed person presents the letter to the tax authorities in the other country upon request.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302002045
RS 02002.045 - Certificates of Coverage and Letters of Exemption under the U.S. - Australian Agreement - 05/11/2022
Batch run: 05/11/2022
Rev:05/11/2022