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Please also be aware of the agreement between the United States and Australia improves Social Security protection for people who spend part of their working life in both countries.
If your employment is covered by both U.S. Social Security and Australian SG, you and your employer would normally have to pay contributions to the U.S. program and your employer would also have to pay SG contributions for the same work. However, the agreement includes rules that eliminate double coverage so that contributions are paid to just one country.
Under U.S. law, self-employed workers are covered by U.S. Social Security if they are U.S. citizens or U.S. resident aliens. The agreement does not have any effect on the coverage of self-employed U.S. residents—they remain covered by U.S. Social Security. Since self-employment is not covered under Australia’s SG program, self-employed U.S. residents (including Australian citizens) do not need any documentation to show that they are exempt from SG contributions.
The agreement exempts self-employed U.S. citizens who reside in Australia from U.S. Social Security coverage. As a result, if you are a self-employed U.S. citizen and reside in Australia, you do not have to pay U.S. Social Security contributions on your self-employment income.
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