A transtasman retirement savings portability scheme is expected to assist thousands of Australians and New Zealanders who have moved and worked in the two countries.
Forsyth Barr superannuation specialist Damian Foster said the legislation was expected to take effect next July, allowing Australian superannuation accounts to be transferred into KiwiSaver and accounts in this country to be transferred to Australia.
About 50,000 New Zealanders moved to Australia last year and more than 13,000 people living in Australia moved to New Zealand.
One of the bonuses of the announcement was that the $16.4 billion believed to be in "lost accounts" in the Australian superannuation system could be accessed, Mr Foster said.
While New Zealanders who returned home after working in Australia could access their Australian super savings once they reached retirement age, in many cases the interest on those savings would not cover management fees, which eventually ate up cash completely.
Those who had since lost track of their accounts could use the Australian Taxation Office website to locate any lost Australian super accounts, he said.
Among the key points of the announcement were that retirement savings would be transferred with minimal cost and participation was voluntary for members and for super funds and schemes.
Amounts transferred from Australia to New Zealand could be accessed at age 60, could not be taken out early for the first home withdrawal scheme, must be held in a KiwiSaver scheme and were not subject to exit tax.
Amounts transferred from New Zealand to Australia would be deemed "non-concessional" contributions. Up to three years of $150,000 non-concessional allowances could be transferred without tax, meaning up to $450,000 of KiwiSaver could be shifted to Australia without being taxed.
The funds were accessible at New Zealand superannuation age, now 65, and could not be transferred to self-managed super funds. They must go to complying Australian super funds, Mr Foster said.
