New Zealand welcomes freeing up of trans-Tasman retirement savings

WELLINGTON, May 31 (Xinhua) -- The New Zealand government Friday welcomed legislation passed in Australia to allow New Zealanders to transfer retirement savings between the two countries, saying it removed an obstacle to the free movement of labor.

Finance Minister Bill English and Revenue Minister Peter Dunne said the trans-Tasman portability of superannuation schemes, which takes effect on July 1, would make it easier for people to take advantage of employment in both countries.

English signed an agreement with Australian Treasurer Wayne Swan in July 2009, which paved the way for the new super portability scheme, and legislation was passed by New Zealand's Parliament in September 2010.

Australia's Tax Office had estimated that about 17.7 billion Australian dollars (21 billion NZ dollars, 16.87 billion U.S. dollars) was sitting in "lost accounts" in the Australian superannuation system.

"We expect that some of this money belongs to New Zealanders who have returned home and these new rules will allow these funds to be brought back to New Zealand," Dunne said in a statement.

Retirement savings between the two countries would be exempt from entry and exit taxes, he said.

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