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Portable super from Oz a step closer

The Australian senate has passed legislation allowing returning New Zealanders to bring their retirement savings with them.

The legislation is expected to take effect from July 1, 2013.

Now, Kiwis who work in Australia must contribute to an Australian complying superannuation fund.

However, the money is locked into the scheme until they reach retirement age.

Under the new rules, savings from certain Australian funds will be able to be transferred into New Zealand KiwiSaver funds – and vice versa.

Finance Minister Bill English welcomed the news of the senate's move.

“I acknowledge Australia’s support for this important next step in the single economic market programme between our two countries,” he says in a statement. 

More by NBR Online staff

Comments and questions
4

Just because you can, may not mean you should.

That's true Paul, but having the choice is a welcome step.

I'll be bring my Kiwisaver into my own self-managed super as soon as possible.
Goodbye you greedy fund managers!

Be very very wary on this one - refer to Section 70 (b) of the NZ Social Security Act
I had a Canadian Govt compulsory super fund (CPP) which I paid into along with my employer for over 20 years while living in Vancouver, (this fund by the way has no contribution from the Canadian Govt - unlike Kiwisaver- so in fact it is in reality an annuity fund) and yet under NZ's current Social Security Act the monthy funds I receive from this retirement fund are deducted from my NZ Super despite the fact I am a 4th generation Kiwi and have worked in NZ for a total of over 25 years (seems new Kiwis have it made, just 10 years as a citizen, and the full pension is available at retirement)
I appealed this discrimatory practice with the Ministry of Social Development at a hearing in October which was rejected based on Section 70 of the Act - the reason for the decision -
"Section 70 is clear in that any overseas pension that the Applicant or their partner receives administered by or on behalf of the government of that country for the same or simular reasons to why we pay any benefit or pension in New Zealand, is deductible"
Seems to me under the Act this must also apply to the Australian compulsory super plan and if not, why then should it apply to the Canadian plan, both being commonwealth countries, both Govt compulsory retirement plan, surely the same rules must apply.
Be warned, when it comes time to draw out your Kiwisaver at retirement, the portion of funds you've transferred from Aussy may just be deducted from your NZ Super.