The Federal Government has put the final pieces of the trans-Tasman retirement savings portability scheme in place, with New Zealand and Australian governments exchanging diplomatic notes.
From 1 July this year Australians and New Zealanders moving between both countries will be able to consolidate their retirement savings and avoid paying fees and charges for separate accounts.
Around 50,000 New Zealanders moved to Australia in the past 12 months while 16,000 people living in Australia moved to New Zealand.
"This scheme is an important step towards removing a barrier to labour mobility between the two countries, and supports our closer economic relations with New Zealand," the Minister for Financial Services and Superannuation, Bill Shorten, said.
The scheme allows individuals to transfer separately identifiable retirement savings between certain Australian super funds and New Zealand Kiwisaver schemes, with voluntary participation for both funds and members.
New Zealand retirement savings transferred to Australia will be treated as non-concessional contributions and will generally be preserved until the New Zealand superannuation qualification age — 65.
