Australia's peak superannuation body has backed draft government legislation that will enable individuals to move their superannuation account balances between the Australian and New Zealand super systems.
Financial Services and Superannuation Minister Bill Shorten yesterday released draft legislation to establish a trans-Tasman retirement savings portability scheme.
"The new scheme will help Australians and New Zealanders make the most of their retirement savings, as they will be able to take their retirement savings with them across the Tasman when they move," Shorten said in a statement.
"This will make it easier for people to move freely between the two countries, help consolidate their retirement savings in their country of residence and avoid paying fees and charges on accounts in the two countries."
At present, Australians and New Zealanders working in Australia cannot take their superannuation with them when they permanently leave Australia.
The Association of Superannuation Funds of Australia (ASFA) said New Zealanders who moved to Australia would be able to consolidate their New Zealand retirement savings with their Australian superannuation benefits.
About 50,000 New Zealanders moved to Australia in the past year, while about 14,000 people who were living in Australia moved to New Zealand in the past year.
"This will deliver benefits to super fund members through reduced account administration fees and potentially higher retirement benefits," ASFA chief executive Pauline Vamos said in a statement.
"This new measure will complement other initiatives designed to slash the number of unnecessary or duplicate accounts in the Australian superannuation system."
Australia and New Zealand have free flows of citizens between each other and this measure will assist individuals and build links between the financial and superannuation systems of the two countries.
The proposed legislation will permit the transfer of retirement savings between certain Australian superannuation funds and New Zealand KiwiSaver schemes.
The legislation is expected to be introduced into Parliament later this year and is likely to take effect from 1 July 2013.
Submissions on the exposure draft close on 28 September.
