The Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012 was introduced in the House of Reps on Thur 11.10.2012. It proposes to amend the ITAA 1997 and other Acts to introduce an Arrangement that allows individuals to move their retirement savings between Australia and New Zealand. Currently, Australians and New Zealanders working in Australia cannot take their superannuation with them when they permanently leave Australia.
Under the portability scheme, individuals will be able to transfer their retirement savings between an Australian complying super fund regulated by APRA and a New Zealand KiwiSaver scheme. Retirement savings will generally be subject to the rules in the host country.
New Zealand retirement savings transferred to Australia will be treated as non-concessional contributions and subject to the Australian non-concessional cap arrangements at the initial point of entry (ie $150,000pa or $450,000 averaged over a 3-year period). It will not be possible for New Zealand-sourced retirement savings to be transferred to or held in a self-managed superannuation fund (SMSF). In addition, it will not be possible to commence a transition to retirement pension from New Zealand-sourced retirement savings transferred to an Australian fund.
DATE OF EFFECT: The amendments will commence on the day the Arrangement between the Governments of both countries comes into force for Australia. The Minister for Superannuation said the legislation is scheduled to commence on 1 July 2013.
[LTN 197, 11/10]
Trans-Tasman superannuation portability: Submissions to Treasury
Treasury has advised that it received 9 submissions in response to the draft legislation proposing to permit the transfer of retirement savings between certain Australian superannuation funds and New Zealand KiwiSaver schemes from 1 July 2013. Legislation was subsequently introduced into the House of Reps on 11 October 2012. There were 8 public submissions and 1 confidential submission. Treasury received submissions from ASFA, the Financial Planning Association, SMSF Professionals Association Australia and other important stakeholders.
[LTN 204, 22/10]
Passes House of Representatives without amendment
The Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012 has passed the House of Reps without amendment and now moves to the Senate. Date of effect: The amendments will commence on the day the Arrangement between the Governments of both countries comes into force for Australia. The Minister for Superannuation said the legislation is scheduled to commence on 1 July 2013.
[LTN 210, 30/10]