Cook Islanders moving back home will be able to easily transfer their superannuation funds to the Cook Islands National Superannuation Fund under an agreement with Australia.
AAP reports that 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’ unique situation, in which they were also New Zealand citizens, meant the scheme did not flow through to them, Australian 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%, or 65% for working holiday maker visa holders.