Trans-Tasman retirement scheme passes Parliament
Australians and New Zealanders can consolidate their Australian and New Zealand earned retirement savings after the Federal Government passed the trans-Tasman retirement savings portability scheme yesterday.
The Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012 supports the efforts of both countries in creating a single economic market.
Retirement savings can be transferred between complying Australian superannuation funds and a New Zealand KiwiSaver scheme.
New Zealand savings transferred to Australia would initially be subject to the non-concessional cap arrangements and retirement savings would be bound by the host country's rules.
Minister for Superannuation, Bill Shorten said it would allow thousands of Australians and New Zealanders to avoid paying fees and charges on two accounts.
"This legislation is an important step towards our closer economic relations with New Zealand. It supports progress toward the goal of a single economic market, to which the Australian and New Zealand governments are both committed," he said.
Shorten said next year would be the 30th anniversary of the Closer Economic Relations Trade Agreement which, coupled with the single economic market agenda had helped to reduce trade barriers and business costs whilst encouraging investment, job creation and growth for both countries.
Last year, 50,000 New Zealanders moved to Australia and 14,000 Australians moved to New Zealand.
The Financial Services Council (FSC) and the Association of Superannuation Funds of Australia (ASFA) welcomed the legislation.
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