Australian Superannuation Portability Allowed

August 25, 2008 International FinanceNew Zealand Finance  No comments

The New Zealand and Australian government have reached a consensus to allow the transfer of superannuation funds belonging to New Zealanders that are held by the Australian government.

The Australian government estimates that the currently hold $13 billion AUD in unclaimed superannuation funds, estimates put up to 30% of this as possibly belonging to New Zealanders who no longer reside in Australia. By current regulation there is no way to access these trans-Tasman funds until their owner is 60 years old.

The scheme allows for reciprocal action of Australian residents wishing to transfer their New Zealand superannuation funds to Australia. Under the scheme proposed by Trade Minister Phil Goff, the portability of superannuation will begin in 2009.