Superannuation portability law progresses 

Legislation will be introduced to parliament in about two weeks to allow New Zealanders coming home from Australia to bring their retirement savings with them.

Kiwis who work in Australia must contribute to an Australian superannuation fund, with the savings being locked until the saver reaches retirement age.

Australia's tax office estimates it holds around $NZ16 billion dollars in 'lost accounts' in the Australian superannuation system, and Finance Minister Bill English believes much of this belongs to New Zealanders who have returned home.

English in July signed an agreement with his Australian counterpart Wayne Swann to allow retirement savings to be transferred between the two countries.

Participation in the superannuation portability scheme will be voluntary but Kiwis bringing money back to New Zealand will need to re-invest it in a Kiwisaver account.

The legislation is expected to take effect in the second half of 2010.

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