Where we've been, where we are going with Australia

What's been achieved

Closer Economic Relations

The trade agreement gave Australia and New Zealand greater access to each other's markets eliminating many tariffs and quantity restrictions.

Transtasman Mutual Recognition Arrangement

This provides for each country to recognise the other's standards for goods and services and acceptance of professional qualifications.

Joint food standards

A body has been set up to administer food safety standards.

What's in progress:

Joint Accounting Standards

Both countries are moving towards international models. A central issue is whether one accounting body should cover both countries.

Competition and consumer protection

The Australian Productivity Commission is examining how the two countries' laws could be harmonised and whether there should be a joint commerce commission.

Integration of transtasman banking regulation.

A working party from the Australian and New Zealand treasuries and reserve banks, and the Australian Prudential Regulation Authority could not agree in their June 30 report.

A New Zealand team is studying whether banking services here would be enhanced by a joint transtasman approach to regulation and crisis management.

The two reserve banks are examining closer information sharing, particularly for crisis management in the event of bank failure.

Fund-raising

A joint discussion paper on the mutual recognition of offers of securities and managed investment scheme interests was issued in July. The proposed system will allow issuers to offer securities in Australia and New Zealand, using the same offer documents and offer structure.

What could be next

Taxation

Triangular tax has been addressed but business wants a joint review to examine mutual recognition of imputation credits, taxation of superannuation funds and pensions where employees move across the Tasman to work or retire, and elimination of double taxation where employees are working on both sides.

Investment

Business on both sides wants common investment regulations. But this is likely to be a sensitive issue in New Zealand as the amount of Australian ownership of New Zealand assets increases.

Telecommunications

Telstra, the Australian telecommunications giant, has lobbied the Howard Government hard for common telecommunications rules. It says the New Zealand Government bends the rules to protect Telecom.

Immigration

The Howard Government closed the door on New Zealanders' open access to Australian social welfare benefits in 2001. But an informal working group which sprung from the first Australia-New Zealand Leadership Forum is looking at reducing barriers either way.

Employment and industrial relations

New Zealand's industrial legislation is less onerous than Australia's. But employers on both sides see merit in having common rules.

Aviation

The failure of the Qantas/Air New Zealand merger proposal may prompt a formal review the transtasman aviation market.

Stock exchange

The Australian Exchange failed in its bid to take over its New Zealand counterpart. But some proponents believe the possibility of having a joint exchange should be examined.

Currency union

The issue that causes the most emotional tension. Australian advocates want their currency to be used in both nations; New Zealand opponents believe a common currency will open the door to loss of sovereignty.