The transfer of retirement savings from Australia to New Zealand is expected to bolster the capital markets and over time could bring down interest rates and the exchange rate.
From Monday, people will be able to move money in complying Australian superannuation schemes into KiwiSaver schemes.
ASB Bank wealth and insurance executive general manager Blair Turnbull said that while an exact figure can't be put on how much money is held in retirement savings in Australia he says it could be around $16 billion.
He says this inflow of capital will support capital markets more broadly which in turn will be good for the wider economy.
But moving the super over from Australia may not be the best option for everybody.
Financial Services Council chief executive Peter Neilson said the tax treatment between the two countries is different.
He said the lower tax rate on the earnings in Australia may make it desirable to leave funds there if they are not needed immediately.
Also Australian funds are available at 60 whereas for New Zealand funds, it's 65.
He said people should take advice before making any move.
Mr Neilson said there is potentially a significant amount of money which could come back into New Zealand and it is likely to have an impact.
He said less dependence on foreign capital could help bring down interest rates and also hold back the exchange rate.
