Aussies will soften over benefits: Goff

By VERNON SMALL deputy political editor

The interests of fairness will eventually oblige Australia to soften its stance and pay benefits to New Zealanders living there, says Foreign Affairs Minister Phil Goff.

The Canberra Government this week announced that it would pay most benefits only to those New Zealanders who had been granted permanent residence status.

"Frankly, I think the Aussies will find it hard to sustain their position over time," Mr Goff told the Herald.

"People who have paid taxes in Australia will have the expectation that if things go wrong they may get something back. I don't think [the new deal] is carved in concrete but it is in the Aussies' court."

He said pressure on the Australian Government so far had come from people who resented paying taxes so that people could come across and surf at Bondi Beach.

It had imposed a two-year stand-down on New Zealanders to stop that, which Mr Goff said was reasonable.

"But over time, when it comes to someone who has paid taxes there for a long period of time and then gets made redundant, it will be very hard for them not to concede that that person is eligible for an emergency benefit.

"They are going to have to use their discretion on their side of the Tasman to ensure that people aren't dealt with unfairly."

The new rules came after a fresh welfare deal was struck between Prime Ministers Helen Clark and John Howard, aimed at limiting the amount New Zealand pays to Australia each year to cover benefits.

Under the deal, New Zealand will pay for only superannuation, veterans' pensions and benefits for those with severe disabilities.

Other New Zealanders in Australia will need to apply for permanent residence, which will be granted on the same basis as for other migrants, or return to New Zealand to receive financial support. As now, they will also face a two-year stand-down before qualifying for social security help in Australia.

Mr Goff said the deal was the best that could be negotiated in the circumstances.

The Australians had argued that they paid $1 billion a year in benefits to New Zealanders and received only $170 million from the New Zealand Government.

New Zealand officials had argued that Australians also took $2.5 billion in taxes from Kiwis.

"They wanted a figure closer to the $1 billion than the $170 million. We said it was not on to pay the social welfare benefits of people who no longer live, work and pay taxes in New Zealand."

He said Australia acknowledged that argument, but said the agreement, which guarantees free movement across the Tasman, could be undermined.