N.Z. to pay Aust. for some benefits

Press, 8 March 1989, Page 6

N.Z. to pay Aust. for some benefits

PA Wellington Parliament passed legislation yesterday which will require the Government to reimburse Australia when New Zealanders receive some welfare benefits there. The Social Security (Reciprocity with Australia) Act will come into force on April 1. From then, New Zealand will reimburse Australia when New Zealanders living across the Tasman are entitled to national superannuation, the invalid’s or widow’s benefit. Moving the third reading of the bill, the Minister of Social Welfare, Dr Cullen, said the inove was expected to ®st New Zealand $7.2 million in the first year and $7.7 million in the second year.

Dr Cullen said the legislation did not mean New Zealand superannuation was portable. “New Zealanders who retire and move to Australia do not qualify for superannuation but for an Australian pension at a later age, at a lower rate and subject to an income and assets test,” he said. “I would strongly discourage anyone from moving to Australia before they’ve taken those factors into account.” . Dr Cullen said he agreed with Australia that it had been unfair that Australia paid pensions for Australians living in New Zealand but alsfifor New Zealanders living in Australia. The Opposition spokesman on social wel-

fare, Mr Venn Young, said a Reciprocal Agreement on Social Security between Australia and New Zealand had been signed only in 1987 and the Opposition deplored that “so early in the piece the Minister of Social Welfare has had to succumb to the pressure from Australia for the New Zealand taxpayer to make a contribution to the cost of the Australian age pension.” New Zealanders were entitled to the pension under the agreement, Mr Young said. He also said it was an unfortunate and deplorable trend that many New Zealanders had deeded their security in old age lay across me Tasman.