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Retirement savings - Source: ONE News -
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The government is being urged to reconsider tax levels so New Zealanders who have been working in Australia will bring their retirement savings back home.
The government has signed an agreement enabling superannuation contributions between New Zealand and Australia to be portable.
Investment Savings and Insurance Association chief executive Vance Arkinstall says some Kiwis might not be so keen on the deal when their money is taxed at a higher rate than in Australia.
He says there may be pressure on the government to even out the tax rates so people will move the money freely instead of worrying about whether they are doing the right thing, tax wise.
Arkinstall says New Zealand does need to save more and lower taxes would drive that.
Arkinstall says while the exact terms of the agreement are not yet clear, it would be straightforward to prove a person worked for a firm over a certain period and it should not be too difficult for Kiwis who have returned from Australia to claim the retirement savings they earned across the ditch.
It's estimated up to $16 billion worth of savings in Australia are unaccounted for. He says Australian authorities will have records as to where that money has come from.
Arkinstall says by contrast, the amount of money Australians have invested in New Zealand superannuation is probably quite low.
