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Source: ONE News -
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New Zealand and Australia have agreed on a scheme which will
allow retirement savings to be transferred between the two
countries.
It's being billed as a major step towards a single transtasman
economic market.
"The focus here is to enable business to work successfully across both economies," says Bill English, Finance Minister.
He and his Australian counterpart, Wayne Swan, have signed a memorandum of understanding that for the first time will allow people to transfer their retirement savings across the Tasman.
"It is simply a hassle if you are contemplating an extended period of time or a permanent move to either country," says Swan.
Around $16 billion of retirement savings are locked up in so-called lost super accounts in Australia and a fair chunk of it belongs to Kiwis who once worked there.
"It will stimulate an interesting debate about whether people are better to leave their money in Australia or bring it back to New Zealand," says English.
If they are still in the workforce in New Zealand the money would go into KiwiSaver accounts.
The economic relationship has been further enhanced with the signing of a new tax treaty between the two countries and other steps towards reducing transtasman red tape to stimulate business and create jobs.
"Any success in the Australian economy is good for us and it's one of the reasons we hope New Zealand will come out of the recession well positioned," says English.
The single market economy agenda will be back on the table when both prime ministers meet in August.
