Making super portable

Umder the idea New Zealanders would be able to take their savings in KiwiSaver with them across the Tasman: similarly those with savings in the compulsory Australian savings scheme would be able to bring them back if they moved back to New Zealand.

Finance Minister Michael Cullen said the main issues to be worked out are keeping the savings “locked in” and also the level of vesting.

The move did not mean New Zealand would have to adopt a similar compulsory savings regime, he said.

The proposal came out of yesterday's talks between Cullen and Australian treasurer Peter Costello on progress towards a single economic market.