The federal government is drafting new legislation to establish a ‘trans-Tasman savings portability scheme’ in an effort to help people who move between Australia and New Zealand better manage their retirement savings.
Currently, Australian and New Zealand citizens working in Australia are unable to take their superannuation with them if they move permanently to New Zealand (or vice versa).
Under the new scheme, people will be permitted to transfer their superannuation savings between an Australian super-fund and a New Zealand KiwiSaver scheme.
Last year approximately 50,000 New Zealanders moved to Australia while 14,000 Australians moved to New Zealand.
With these numbers expected to increase year on year, this is a positive move by the Federal government. Some of the many benefits include:
- Allows both Australians and New Zealanders to maximise their retirement savings by taking them across the Tasman when they move.
- By consolidating superannuation into one account, people can avoid paying fees and charges on accounts in both countries.
- Makes it easier for working people to seek job opportunities in both Australia and New Zealand.
The bill for this new scheme is expected to be introduced to federal parliament in late 2012, and at this stage is planned to take effect from July, 2013.