Super, KiwiSaver and the Trans-Tasman Retirement Savings Portability Scheme

If you’re thinking of making a permanent move between New Zealand and Australia, what do you do about your superannuation fund or KiwiSaver scheme? 

You may have heard of the Trans-Tasman Retirement Savings Portability Scheme. Under the scheme, retirement savings can be transferred between Australia and New Zealand.

It’s important to note that the scheme is voluntary – for individuals, Australian superannuation funds and KiwiSaver scheme providers. You should check with your Australian super fund or your New Zealand KiwiSaver scheme provider to confirm that they participate in the scheme. Only APRA-regulated complying super funds and NZ KiwiSaver scheme providers can participate in the transfers, and not all super funds will accept KiwiSaver transfers. 

Transfers from Australia to New Zealand

• Eligibility: You must be aged under 65 (the current eligibility age for NZ super) and provide evidence of permanent emigration to NZ.
• What you can transfer: Your entire balance can be transferred from a complying APRA-regulated super fund; you may also be able to transfer ATO-held unclaimed super money. Exclusions apply for self managed super funds (SMSFs) and certain interests.
• Where you can transfer: To any participating KiwiSaver scheme.
• Contribution caps: There’s no limit on how much you can transfer, as the NZ system doesn’t have contribution caps.
• Tax on transfers: A transfer from your super fund to a KiwiSaver scheme is not taxed, and withdrawals are tax-free once you are legally allowed to access them. Check for any other possible NZ tax implications with your financial advisor. 
• Access to funds: Transferred Australian savings can’t be used to buy your first home, and can’t be transferred to a third country if you move again. Funds are held in 2 parts – you can access the Australian component when you reach age 60 and are retired; for the NZ component you’ll need to reach the NZ retirement age (currently 65). 
• Moving back to Australia: If you decide to move back, you’ll need to find a fund that will accept transfers from a KiwiSaver scheme and be able to demonstrate which savings components (Australian or New Zealand) previously counted toward your non-concessional contributions cap and the tax-free and taxable components of your savings so they keep that status. If you don’t provide the information, you may have to pay excess contributions tax or additional tax.

Transfers from New Zealand to Australia

• Eligibility: You must be aged under 75 and provide evidence of permanent emigration to Australia.
• What you can transfer: Your entire KiwiSaver scheme balance can be transferred.
• Where you can transfer: To any Australian APRA-regulated complying super accepting KiwiSaver transfers. You can’t make a transfer to an SMSF.
• Contribution caps: NZ-sourced savings are treated as non-concessional contributions and are subject to the non-concessional cap. Contributions over the cap might result in excess non-concessional contributions and you might need to release an amount from your fund or pay extra tax. Your total superannuation balance also impacts what you can contribute.
• Tax on transfers: Transfers from an NZ KiwiSaver scheme to an Australian super fund are not taxed. Withdrawals are tax-free in retirement once conditions of release are met.
• Access to funds: KiwiSaver scheme savings can’t be transferred to an SMSF, and they can’t be transferred to a third country if you move again. Funds will be held in 2 parts – to access the Australian component you’ll need to be aged at least 60 and meet the Australian definition of retirement; for the NZ component you’ll need to reach the NZ retirement age (currently 65).
• Moving back to NZ: If you decide to move back, you’ll need to find a fund that will accept transfers from an Australian super fund. The rules for transferring super funds to KiwiSaver will apply.