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Access to Aus retirement savings for Kiwis a step closer

Published: 6:04AM Wednesday September 19, 2012 Source: ONE News

  • Australian dollars

Thousands of New Zealanders with retirement savings stuck in Australia are one step closer to being able to bring their money home.

The Australian minister for superannuation Bill Shorten has released draft legislation to establish a trans-tasman retirement savings portability scheme two years after New Zealand passed the required legislation.

It is expected the scheme, which would allow Australians and New Zealanders to take their retirement savings with them when they move back home, will be to be introduced to Austrlaia's parliament later this year.

Australians and New Zealanders working in Australia are unable to take their super with them when they permanently leave Australia.

Kiwis have billions of dollars in savings locked in superannuation accounts in Australia, and while they can access their superannuation once they reach retirement age, in many cases the interest on those savings does not cover the management fees from Australian super companies, which drain the cash.

Shorten said the scheme was intended to enhance labour mobility between the two countries, the Australian reported.

"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," he said.

"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."