The Australian Parliament today passed the Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012, introduced by the Gillard Government to establish a trans-Tasman retirement savings portability scheme.
"The trans-Tasman retirement savings portability scheme will remove a barrier to labour mobility between the two countries," Mr 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."
Currently, Australians and New Zealanders working in Australia cannot take their superannuation with them when they permanently leave Australia.
New Zealanders who move to Australia will be able to consolidate their New Zealand retirement savings with their Australian superannuation benefits.
Similarly, Australians moving to New Zealand, and New Zealanders returning home, will be able to take their Australian benefits with them, to consolidate with their New Zealand retirement savings.
Around 50,000 New Zealanders moved to Australia in the last year, and around 14,000 people living in Australia moved to New Zealand.
"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," said Mr Shorten.
"2013 will see the 30th anniversary of the Closer Economic Relations Trade Agreement with New Zealand. That Agreement, together with the single economic market agenda, has brought down trade barriers, reduced costs for business, encouraged investment and created jobs and economic growth for both Australia and New Zealand," Mr Shorten said.
The legislation is scheduled to commence on 1 July 2013.
22 November 2012
Attachment
Key features of the portability scheme
Key features of the portability scheme include:
- individuals may transfer their retirement savings between an Australian complying superannuation fund regulated by the Australian Prudential Regulation Authority and a New Zealand KiwiSaver scheme;
- participation is voluntary for members and for superannuation funds and schemes;
- retirement savings will generally be subject to the rules in the host country; and
- New Zealand retirement savings transferred to Australia will be treated as non‑concessional contributions and subject to the Australian non‑concessional cap arrangements at the initial point of entry.