How to transfer between KiwiSaver and Australian super

If you’re planning to move from New Zealand to Australia then you may be able to transfer your retirement savings with you. It’s all thanks to a trans-Tasman retirement savings portability scheme between our two countries. So how does it work?

There are some conditions you have to meet but if you have been saving for your retirement in a KiwiSaver scheme, that money can be moved to an Australian super fund.

What is KiwiSaver?

KiwiSaver is a voluntary savings scheme set up by the New Zealand Government to help people save for their retirement. It works in a similar way to Australia’s superannuation system and there are a number of KiwiSaver providers to choose from.

If you’re an employee in New Zealand then your employer may be required to make contributions to your KiwiSaver scheme. You’ll also be required to make contributions from your salary and there could be additional contributions from the government.

Again, similar to Australia’s super system, you can choose various options on how your KiwiSaver fund is invested for your retirement.

Read more:  What is KiwiSaver and how does it work?

How can I transfer my KiwiSaver to Australian super?

If you’re moving here from New Zealand and have a KiwiSaver scheme you may be able to transfer those funds to an Australian super provider.

The Australian Taxation Office (ATO) says you need to meet certain conditions.

For example, you need to be moving here permanently or indefinitely and have an Australian Tax File Number (TFN).

Your funds can only be transferred to an Australian Prudential Regulation Authority (APRA) regulated super fund that’s participating with the KiwiSaver scheme. Check with your KiwiSaver scheme to see if there are fees charged for the transfer.

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The money transferred is not taxed and can be withdrawn tax-free once you reach the conditions of release. The New Zealand-sourced component and any Australian-sourced component will be considered as separate. Generally you will be able to access any Australian component once you reach 60, but you need to be 65 before you can access your New Zealand component.

You must transfer the full amount of your KiwiSaver money to your new Australian fund. But there is a limit on how much you can transfer. If you have more than the limit the ATO says you won’t be able to make the transfer.

That limit is based on what the ATO considers your non-concessional contribution cap. That’s the maximum amount you’re allowed to transfer into your super in any financial year, which at the moment is $330,000 if you can make use of the bring forward rule. The figure could be lower depending on your Australian super balance.

Depending on your circumstances you may consider keeping your KiwiSaver scheme going and start a new Australian super account, but check with your New Zealand provider to see what options may be available to you.

Who accepts KiwiSaver transfers in Australia?

Only a handful of super providers in Australia accept transfers from KiwiSaver so you will need to shop around to see what’s available and what suits your needs.

You can only transfer funds to an APRA-regulated super fund, but the organisation says it doesn’t keep a list of potential providers.

A few that do accept KiwiSaver transfers include:

• Brighter Super (formerly Energy Super)
• First Super
• TelstraSuper
• Verve Super

Can I transfer my Australian super to KiwiSaver?

The trans-Tasman agreement works both ways so if you’re emigrating to New Zealand to live you may be able to transfer your Australian super savings to a KiwiSaver scheme, if you meet a number of conditions.

Generally speaking, if you move to another country to live and work, any savings you have in super stays here. The one exception is if that other country is New Zealand.

You need to be in an APRA-regulated super fund that also participates in the KiwiSaver scheme. You can check if your super fund is APRA regulated using the superfundlookup.gov.au online tool. You should check with your own super provider to see if it works with KiwiSaver.

If you have several super accounts you may need to consider consolidating them into one that works with KiwiSaver. But check first to see what benefits you may lose, and any fees or charges.

You need to meet certain other conditions before you can transfer your super to a KiwiSaver scheme.

For example, the ATO says you need to sign a statutory declaration that you have permanently emigrated to New Zealand and you need to provide proof of residence at a New Zealand address.

You also need a New Zealand Inland Revenue Department (IRD) number and an account with a KiwiSaver scheme that you can transfer your Aussie funds into.

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The ATO says there is no limit to the amount you can transfer, but you need to transfer the full amount of your Australian super.

The amount you transfer is not taxed in Australia and you can then withdraw it tax-free from your KiwiSaver scheme, once you are allowed to access the funds.

You should generally be able to access the Australian component of your KiwiSaver scheme when you reach 60. You won’t be able to access any New Zealand component until you reach 65.

Again, depending on your circumstances, you don’t have to transfer your Australian super and you may consider keeping it going and open a new KiwiSaver scheme.

If that’s your plan, tell your Australian super provider you’re going to live overseas to see if there’s any restrictions, potential loss of benefits or risk your account could be considered inactive. Make sure they have your new contact details too.

Whichever direction you’re moving across the Tasman Sea, before doing anything you would be wise to seek some independent financial advice in both countries to see what options may be available to you and what best suits your circumstances.

If you do decide to make a transfer then talk with your existing provider to see what paperwork you need to make things happen.

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