The fiscal impact of the trans Tasman travel arrangement: Have the costs become too high?
Source: Australian Tax Forum Journal Article
Published Date: 1 Jul 2018
The trans-Tasman travel arrangement (TTTA) allows Australian and New Zealand citizens to work and live in each other's country with minimal restriction and is seen as being a key part of the closer economic relations (CER) agreement between the two countries.
The TTTA effectively underwent a significant change when a new social security agreement (SSA) was negotiated with Australia in early 2001 along with a number of domestic law changes to Australian social security and immigration rules applying to New Zealand migrants. While the basic principle of allowing New Zealand citizens the right to work and live in Australia with minimal restriction remains, migrants after February 2001 are no longer treated as permanent residents of Australia and are ineligible for a wide range of social assistance irrespective of the time they are resident in Australia. Additionally, they have limited scope to secure permanent residence or Australian citizenship despite recent changes in 2016.
This article examines the costs to both Australia and New Zealand arising from these changes made in 2001. It is argued that New Zealand now has increased fiscal risks arising from migration under the TTTA whether arising from the SSA or not, while Australia faces social costs from an increasing number of New Zealand migrants who are effectively "second class" citizens. Potential solutions to address some of the current problems are also identified.
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Details
- Published By: Andrew MC Smith
- Published On:1 Jul 2018
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