For the United States, the Agreement applies to the Old-age, Survivors and Disability Insurance (OASDI) program and the corresponding tax laws (Federal Insurance Contributions Act (FICA) taxes for employment and Self-Employment Contributions Act (SECA) taxes for self-employment). The Agreement does not apply to Medicare provisions. If an employee is exempt from U.S. Social Security coverage under this Agreement, neither the employee's nor the employer's share of the FICA tax is due as long as the exemption is effective. A self-employed person is exempt from paying SECA taxes (equivalent to the employee's and the employer's shares of the FICA tax) for any period the exemption is effective.

The U.S. laws to which the Agreement applies are Title II of the Social Security Act except sections 226 (Medicare benefits), 226A (Medicare coverage for certain persons suffering from renal disease) and 228 (special age-72 payments - Prouty benefits). Hospital insurance under Medicare has been excluded. It is understood, though not specified, that persons to whom the Agreement applies who qualify independently for Medicare hospital insurance benefits would be entitled to receive such benefits.

For Australia, the Agreement applies to the contributions that employers must make to employees' private retirement accounts under the Superannuation Guarantee (SG) program. Employers do not have to make contributions to SG for workers who are exempt from Australian coverage as a result of the Agreement.

Australia's basic social security program that covers its age pension, disability pension, survivors pension, and carer payments is separate from the SG program and is funded through general revenues and not from earmarked payroll taxes. Therefore, the provisions of the Agreement that eliminate dual social security coverage and taxation do not apply to the Australian basic social security program. However, these benefit categories might be applicable to people who have divided their careers between Australia and the United States.