Talks to free up billions of dollars of New Zealanders' assets tied up in Australian superannuation accounts are set to take place next week.

Finance Minister Bill English will meet Australian Treasurer Wayne Swan in Brisbane on July 16 to discuss the portability of retirement savings between New Zealand and Australia.

Currently when New Zealanders work in Australia and move back across the Tasman their compulsory retirement savings are left behind.

Australia's Tax Office estimated last year it had about $A13 billion ($NZ16.6 billion) in 'lost accounts' in the Australian superannuation system.

"We expect that a considerable amount of this money could belong to New Zealanders who have returned home and portability arrangements would allow these funds to be brought back to New Zealand," Mr English said.

If the talks were successful the changes would also allow New Zealanders moving to Australia to move their retirement savings.

The same would apply to Australians shifting across the Tasman to New Zealand.

"Retirement savings portability is part of the wider single economic market work programme, which will reduce impediments to trade and the free movement of people between our two countries," Mr English said.

"Although details are still to be discussed, this stands to be an important step forward. It would allow New Zealanders and Australians to consolidate their financial affairs in the country in which they live."

It was envisaged the new arrangements would apply to retirement savings held in KiwiSaver accounts and certain Australian complying superannuation funds.

Retirement savings from Australia could be transferred only into KiwiSaver funds in New Zealand.

Mr English's annual meeting with Mr Swan would also cover progress with the single economic market programme, discussions about the two countries' new double tax agreement signed last month, along with global and domestic economic issues.

During a two-day visit, Mr English will speak to the Australian Association of Business Economists in Sydney on July 15 and visit businesses with interests in New Zealand.

He will then travel to Brisbane for the meeting with Mr Swan, a speech to the Trans-Tasman Business Circle and a function with New Zealand and Queensland businesses.

Sourced from www.stuff.co.nz on 8th July 2009