Leave your super cash in Aust, Kiwis told

Though New Zealanders will soon be able to bring their superannuation money back from Australia, they would make more leaving it invested across the Tasman, an international consulting agency says.

A deal reached yesterday between Finance Minister Bill English and Australian Treasurer Wayne Swan allowed New Zealanders to repatriate their Australian super into the Kiwisaver scheme.

The Australian Tax Office estimated about A$13 billion was held in "lost" accounts within the superannuation system - with most belonging to New Zealanders.

However, unless serious changes were made to the New Zealand tax system, there was no financial benefit in bringing money back across the Tasman, Mercer business leader Bernie O'Brien said.

"The only advantage of moving your money from Australia back to New Zealand is a desire to manage all your retirement assets in one place," he said.

All money invested in the Kiwisaver scheme was taxed at either 19.5 or 30 per cent, compared with the Australian schemes' usual 15 per cent.

This meant an individual with $100,000 could make up to $36,000 more over 20 years by leaving the money in Australia until retirement, he said.

The portability agreement worked both ways between the official Australian superannuation fund and New Zealand's Kiwisaver scheme.

It has been assumed that most of the money held in the "lost" accounts belongs to New Zealanders, but Finance Minister Bill English said that could not be confirmed.

'They genuinely don't know. We can't assume anything, but a proportion of it will belong to Kiwis."

Participation in the portability scheme would be voluntary, with legislation expected to be passed within 12 months.

- NZPA