Home > Our Publications > New Zealand Outlook > 2001 > April

NEW Zealanders living in Australia will be unable to access local unemployment and social security payments, following a new agreement between the two countries.
The agreement announced by Prime Minister Helen Clark and her Australian counterpart John Howard means New Zealanders crossing the Tasman will need to gain permanent residency before they can claim many social security benefits, including the dole.
The agreement comes into force on July 1 but it affects most Kiwis arriving in Australia from February.
Despite the obvious implications for New Zealanders, both Mrs Clark and Mr Howard heralded the agreement as a "win-win" deal for both countries.
The Government was advised the proposal would vastly increase the cost of welfare assistance in New Zealand and severely impact on future migrants who do not meet the criteria for permanent residency in Australia, official sources said.
"Reciprocal social security agreements between us go back a long way but they have come under very serious strain," Mrs Clark said.
New Zealand had been reimbursing Australia for age, disability support, single parents' and widow benefits that it paid out to Kiwis living there, she said
Under the new agreement, superannuation, veterans' and some disability benefits will still be paid to Kiwis who move to Australia but they will have to gain permanent residency on the same terms as other migrants to gain access to other welfare payments.
"This will represent a saving over the next three years of around $100 million to the New Zealand taxpayer," Mrs Clark said.
"The New Zealand Government is pleased to be able to reach this new arrangement and put behind us a matter which has become a serious and unnecessary irritant in our relationship with Australia."
"Our spending priorities must be to attend to the needs of New Zealanders who continue to live here in New Zealand," Mrs Clark said.
Mr Howard said the arrangement was "beneficial to both countries".
"You have the advantage of coming without... hindrance but like everybody else you have to meet a qualification for permanent residency in order to get a benefit.
"I don't think that's unreasonable at all," Mr Howard commented.

.