Ngaro Alfred: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeNgaro Alfred: Questions for Oral Answer — Questions to Ministers[Sitting date: 02 July 2013. Volume:691;Page:11552. Text is incorporated into the Bound Volume.]3.ALFRED NGARO (National)to theMinister of Finance: What recent developments have further contributed to building the closer economic market between New Zealand and Australia?Hon BILL ENGLISH (Minister of Finance):New arrangements allowing New Zealanders to transfer their retirement savings between complying Australian superannuation schemes and KiwiSaver took effect from 1 July. This welcome development follows confirmation from the Australian Government in May that it had completed the legislation allowing this to happen. It is a direct result of the strong commitment between the New Zealand and Australian Governments to remove another obstacle to the free movement of labour between our two countries. Trans-Tasman portability of retirement savings will make it easier for people to take advantage of employment opportunities in both countries and take their retirement savings with them.Alfred Ngaro: How did the agreement to allow trans-Tasman portability of retirement savings come about and how significant will this be for New Zealanders saving on either side of the Tasman?Hon BILL ENGLISH: Negotiations were begun and significantly progressed under the previous Government by Dr Michael Cullen. I signed an agreement with the Australian Treasurer in July 2009. Legislation was passed in this Parliament in September 2010. This is significant for New Zealanders who are currently working or have previously worked in Australia. The Australian Taxation Office has estimated there are billions in lost accounts in the Australian superannuation system. We expect that some of that money belongs to New Zealanders who have worked in Australia at some stage and have returned home. These new rules will allow those New Zealanders to find their account and bring those funds back to New Zealand into the New Zealand KiwiSaver scheme.Alfred Ngaro: How will the new portability arrangements work for New Zealanders who want to bring their retirement savings home?Hon BILL ENGLISH: From 1 July New Zealanders are able to transfer funds in their Australian superannuation schemes into participating KiwiSaver schemes and vice versa. Retirement savings transferred from Australia will be exempt from any taxes. Amounts transferred from Australia will generally be subject to KiwiSaver rules. However KiwiSaver members will not be able to withdraw money transferred from Australia for buying their first home but they may use interest earned on those savings for that purpose.Alfred Ngaro: What are the rules setting out when retirement savings transferred from Australia to New Zealand and vice versa can be withdrawn?Hon BILL ENGLISH: Retirement savings transferred from Australia into New Zealand KiwiSaver schemes can be withdrawn when members reach the age of 60. KiwiSaver savings transferred to Australian schemes can be withdrawn when members reach the age of 65 which is in line with KiwiSaver rules. One effect of the new arrangements is that individuals will no longer be able to withdraw their savings as cash1 year after permanently migrating to Australia but they will be able to take with them any Government contributions such as the kick-start and member tax credits when they move KiwiSaver funds to Australia. And they will be able to access their first-home subsidy. It is worth noting that participation in the superannuation portability scheme will be voluntary for members deciding whether to leave their funds in New Zealand for instance or transfer them to Australia.