Kiwis to lose Australian benefit rights

By CHRIS DANIELS and NZPA

New Zealanders moving to Australia will soon lose traditional rights to welfare benefits and healthcare, in a secret transtasman deal expected to be signed before Christmas.

The Government is preparing to let Australia cut permanent residency rights for New Zealanders, meaning they would be treated the same as other migrants.

New Zealanders could still live in Australia under the proposed deal.

But without permanent residency, they would not be entitled to benefits such as family tax relief, maternity allowances, childcare benefits, housing benefits, healthcare and even education for their children.

It will not apply to those who already have permanent residency in Australia.

In return, Australia will stop asking for money from our Government to pay for New Zealanders receiving benefits in Australia.

Prime Minister Helen Clark last night went to great pains to stress that the Government was not planning to alter the right of New Zealanders to migrate to Australia and work there.

What would change was their access to benefits there.



She said the plans were "all about eligibility for social security - Australians will not continue to pay for social security for people they would not choose as migrants."

New Zealand's taxpayers were paying the social welfare benefits of expatriates living in Australia - something they did not do for New Zealanders in other countries.

A briefing paper from Foreign Affairs Minister Phil Goff, leaked to the New Zealand Press Association, said the agreement would halve the annual flow of people crossing the Tasman.

"A strong negative public reaction is nevertheless possible, as is a surge of New Zealanders crossing the Tasman ahead of implementation," the paper says.

It is understood that any New Zealanders travelling to Australia after next March will fall under the new system, which puts them on equal footing with all other migrants.

"Thereafter, Australia (tentatively) estimates that half the current annual flow of around 40,000 migrants might not qualify for permanent residence due to insufficient or inappropriate skills, health problems, quota restrictions and other reasons," the paper says.

The proposed agreement could also mean Australian states would charge full fees for primary and secondary schooling of non-resident New Zealanders.

But expatriate pensioners and possibly invalids would be catered for under the new agreement.

Some details are yet to be settled, as the respective Prime Ministers were not planning to announce the initiative until February.

Mr Goff told the cabinet it would need to decide whether New Zealand should impose similar measures on Australians wanting to migrate here.

"This would make it easier for the Australians to justify measures removing entitlements the New Zealand community has historically enjoyed in Australia.

"Before taking a decision on how to treat Australian migrants in New Zealand, it will be necessary to consider carefully the practical economic, fiscal, social and administrative implications."

New Zealand would save millions of dollars on its social security agreement with Australia under the proposal, but that could be negated by an extra burden on the NZ welfare system.

Kiwis unsuccessful in gaining permanent residency are expected to return from Australia if they become sick, lose their jobs or become sole parents.

Other unskilled workers who might have migrated to Australia for better opportunities will be deterred from moving, instead choosing to rely on welfare in New Zealand.

The uneven nature of the present arrangements has long concerned the Australia Government.

Australian Immigration Minister Philip Ruddock produced figures last month showing 31,615 citizens moved permanently to Australia in the year ended March 2000, compared with 5208 Australians moving in the other direction.

In Canberra last night, a spokesman for Mr Ruddock refused to comment on "a purported leaked briefing paper to a minister of another country."

He said it was an issue that needed to be directed to Mr Goff.

Mr Goff is on a four-country visit in the Pacific Islands and was not available last night.