RS 02002.010 through RS 02002.030 describe the terms of the Agreement that eliminate dual coverage and include the majority of situations where the United States (U.S.) and Australia would both cover and tax a worker in the absence of an Agreement. However, sometimes the application of the normal Agreement rules would yield anomalous or inequitable results. For this reason, the Agreement includes a provision that permits the authorities in both countries to grant exceptions to the normal coverage rules of the Agreement if both sides agree.

The intent of the exception provision is not to provide workers or employers with the freedom to elect coverage in conflict with normal Agreement rules. The purpose of the special exception provision is to allow a worker to continue coverage in the country where the worker normally works and has coverage, in order to ensure that the worker will meet eligibility requirements for retirement or disability benefits.

 

An employee and their employer or a self-employed person may request a special exception to the normal coverage rules of the Agreement. Both countries must agree to the special exception and agree on the country of coverage. If either country does not agree with a proposed exception, the applicable coverage rule of the Agreement determines the worker’s coverage.

 

An employee and employer or a self-employed person who wish(es) to apply for a special exception may write to the addresses below in the country where the worker wishes to remain covered. The letter should:

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  Give all the information necessary to issue a certificate of coverage under the U.S. - Australian Agreement; and

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  Explain the reason for the special exception request.

Persons wishing to request an exception granting U.S. coverage should write to the following address:

Social Security Administration
Office of Earnings and International Operations
Division of Training and Program Support
P.O. Box 17741
Baltimore, Maryland 21235-7741

Persons wishing to request an exception granting Australian coverage should write to the address below:

Australian Taxation Office
Superannuation International Agreements
P.O. Box 2000
Moonee Ponds VIC 3039
AUSTRALIA

Upon receipt of a request for a special exception, the agency that receives the request will consider it in collaboration with the other country's agency. If both agencies approve the request for a special exception, the agency that receives the request will issue a certificate of coverage. The certificate of coverage will serve as proof of exemption from coverage and taxes in the other country. See RS 02002.045 for more information about certificates of coverage under the U.S. - Australian Agreement.