5 days Ago By Dominic Giannini
Cook Islanders will be able to easily transfer their superannuation funds under an agreement with Australia as more Pacific island nations express interest in the reform. The change allows people who move to the Cook Islands permanently to transfer their nest egg to the Cook Islands National Superannuation Fund. The agreement between the two nations covers a gap in an Australia-New Zealand scheme that allows people to transfer retirement savings to their home country.
Cook Islanders were in a unique situation where they were also New Zealand citizens with the scheme not flowing through to them, Financial Services Minister Stephen Jones said. "In effect, what that deal does is equalised the arrangements between New Zealand and Cook Islands," he told reporters in Canberra on Monday. Australia was working through similar requests from other Pacific island leaders, he said.
Tens of thousands of Pacific islanders are working in Australia under a labour scheme and receive the same benefits as their Australian counterparts, including superannuation. They can withdraw their superannuation funds when leaving Australia permanently but there are access concerns around navigating paperwork, fees and internet access once back in their home countries with little support. It's also taxed at 35 or 45 per cent, or 65 per cent for working holiday maker visa holders.
The Australian government is working with ANZ, Westpac and Commonwealth Bank to ensure the continuation of its banking services in the Pacific amid concerns Australian banks leaving the region will create a vacuum for China. Hindering access to cash and financial services in the Pacific could also impede local economies and businesses. ANZ operates in nine Pacific island nations.
Treasurer Jim Chalmers said he had "terrific engagement" with ANZ and other banks about maintaining a Pacific presence. Australia is working with Pacific governments directly on anti-money laundering and counter-terrorism financing as it leans on the banks to keep operating. The treasurer wouldn't confirm whether the federal government was considering underwriting risk or a cash injection with banks worried about profitability in the region.
"We'll have more to say about the specifics of that arrangement in due course," Dr Chalmers said..
