Under U.S. law, self-employed workers are covered by U.S. Social Security if they are nationals or residents of the United States. Article 6.7 makes clear that the Agreement will not affect self-employed U.S. residents, i.e., they will remain subject to U.S. Social Security coverage and taxation. On the other hand, Article 6.8 is intended to alter the coverage status of self-employed U.S. nationals residing in Australia by exempting them from U.S. Social Security coverage. Since residents of Australia, including U.S. nationals, are generally liable for Australian income and other taxes and can become eligible for benefits under Australia's residence-based Social Security program, it is an unnecessary burden for them to pay U.S. Social Security taxes for duplicate benefit protection.
