Belgium and Australia have concluded an agreement on social security, effective July 1, 2005. Double social security cost and coverage should now be eliminated while portability of certain social security benefits between Belgium and Australia would be guaranteed. The agreement applies to any person who is or has been an Australian resident, or is or has been subject to the Belgian or Australian social security scheme.

The agreement notably ensures that social security contributions for salaried persons are due in a country to the extent that the employment is carried out in that country (lex loci labori). So, employee social security contributions may be payable in two countries but not on the same employment income. The employee may however remain subject to his home country social legislation when assigned for a maximum period of five years by his usual employer (“the secondment rule”).

With respect to self-employed persons carrying out an activity in both countries, they will exclusively contribute to the social security scheme in their country of residence.

Furthermore, subject to certain conditions, the agreement allows for the payment of certain Australian old-age and disability pensions to people residing in Belgium, and conversely. No payment under this agreement will be made for any period prior to its entry into force.