The Government on Tue 18.9.2012, released draft legislation proposing to establish a trans-Tasman superannuation portability scheme to permit the transfer of retirement savings between certain Australian superannuation funds and New Zealand KiwiSaver schemes from 1 July 2013. The draft legislation implements the tax treatment of superannuation transferred under the proposed scheme. 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 to transfer New Zealand-sourced retirement savings held in an Australian superannuation fund to 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.
SUBMISSIONS are due by 28 September 2012. Legislation to give effect to the measure is expected to be introduced into Parliament later in 2012.
Source: Minister for Financial Services and Superannuation media release No 061, 18 September 2012
[LTN 181, 18/9]