Parliament has passed a new Bill making superannuation portable between Australia and New Zealand.
The trans-Tasman savings portability scheme will allow Australian superannuation and NZ KiwiSaver funds to be transferred and provide benefits such as savings consolidation and lower fees on multiple accounts.
“The trans-Tasman retirement savings portability scheme will remove a barrier to labour mobility between the two countries,” minister for financial services and superannuation, Bill Shorten said.
“It will help thousands of Australians and New Zealanders who move across the Tasman Sea each year, who will be able to consolidate their retirement savings in their country of residence and avoid paying fees and charges on accounts in the two countries.”
The scheme was passed yesterday as part of the Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012 and will be enacted as of 1 July 2013.
At present, Australians and New Zealanders working in Australia cannot take their superannuation with them when they permanently leave Australia.
Last year almost 50,000 New Zealanders moved to Australia and approximately 14,000 Australians headed for New Zealand permanently.
Mr Shorten said the legislation, which was first announced in July 2009, is especially relevant as the 30th anniversary of the Closer Economic Relations Trade Agreement with New Zealand approaches.
“That Agreement, together with the single economic market agenda, has brought down trade barriers, reduced costs for businesses, encouraged investment and created jobs and economic growth for both Australia and New Zealand,” Mr Shorten said.
“It supports progress toward the goal of a single economic market, to which the Australian and New Zealand governments are both committed.”
The Financial Services Councils have given the portability measures approval for making private pensions transferable across the Tasman.
“The scheme will make life easier for hundreds of thousands of Australasians,” FSC chief executive John Brogden said.
Australia and New Zealand have free flows of citizens between each other and this latest superannuation measure is one of numerous proposed changes towards a single financial market for both countries.
In June this year ASIC and New Zealand’s Financial Markets Authorities (FMA) made a joint decision to allow advisers to practise on either side of the Tasman, based on qualifications and experience gained from their homeland.
The trans-Tasman Mutual Recognition legislation applies to Australian financial services licence holders – mainly firms or companies – but the new arrangement between ASIS and FMA allowed advisers to be recognised on an individual level.
