The Australian Parliament last month passed legislation allowing New Zealanders who work in Australia to take their retirement savings back with them when they return to New Zealand. Currently, New Zealand workers in Australia cannot access savings made under the Australian scheme until they reach retirement age.
The change would allow retirement savings from certain Australian superannuation funds to be transferred into New Zealand KiwiSaver funds, and vice versa for the superannuation funds of Australian workers in New Zealand.
New Zealand's Parliament passed legislation allowing this to happen in September 2010. New Zealand Finance Minister Bill English described the reciprocal legislative move from Australia as an important step in the Single Economic Market programme. He said it would particularly help the free movement of labour between the two countries, which would strengthen the Trans-Tasman Closer Economic Relations agreement.
The law change is expected to take effect from 1 July 2013. Click here to find out more about how portable Trans-Tasman super will be implemented.