Talks to free Kiwi super in Australia

Talks aimed at freeing billions of dollars of New Zealanders' assets tied up in Australian superannuation accounts will take place next week.

Finance Minister Bill English will meet Australian Treasurer Wayne Swan in Brisbane on July 16 to discuss the portability of retirement savings between New Zealand and Australia.

Currently when New Zealanders work in Australia and move back across the Tasman their compulsory retirement savings are left behind.

Australia's Tax Office estimated last year it had about A$13 billion ($16.3 billion) in "lost accounts" in the Australian superannuation system.

"We expect that a considerable amount of this money could belong to New Zealanders who have returned home ..." Mr English said.

If the talks were successful the changes would also allow New Zealanders moving to Australia to move their retirement savings.

The same would apply to Australians shifting to New Zealand.

"Retirement savings portability is part of the wider single economic market work programme, which will reduce impediments to trade and the free movement of people between our two countries," Mr English said.

It was envisaged the new arrangements would apply to retirement savings held in KiwiSaver accounts and certain Australian complying superannuation funds.

Retirement savings from Australia could be transferred only into KiwiSaver in New Zealand.

- NZPA