Australian Superannuation Portability Talks

July 7, 2009 International TaxationNew Zealand FinanceNew Zealand Taxation  No comments

Talks between Finance Minister Bill English and Australian Treasurer Wayne Swan regarding superannuation portability will commence on the 16th of July.

An agreement in these talks could see a complete set of portability rules in regards to the superannuation of residents of either country permanently moving to the other. Bill English has stated that the envisaged set of rules will allow for the movement of Kiwisaver funds an appropriate compatible Australian counterparts. As the details have yet to be discussed between appropriate parties, future solutions are purely speculation, but it is thought that portability will work both ways with no strong restrictions, and serve to aid the Single Economic Market Programme between Australia and New Zealand.

The Australian Tax Office currently over A$13 billion in “lost accounts” in the superannuation system of Australia. It is believed that a significant part of this must belong to New Zealanders who have since transfered back to New Zealand. These talks could lead to these people being able to transfer their money across.