KiwiSaver vs Superannuation
The differences you should know if you’re moving to Australia
New Zealand and Australia both have retirement schemes called superannuation, but it turns out there are some big differences between the two. If you are planning to move from New Zealand to Australia, it’s worth taking note.
The similarities
Both countries have retirement schemes called ‘superannuation’ – or ‘super’ for short. But in New Zealand, superannuation usually refers to the retirement scheme provided by the government. (The equivalent government retirement scheme in Australia is called the Age Pension.)
Superannuation in Australia is where employers and employees make contributions to a retirement savings account during their working life. It’s similar to KiwiSaver in New Zealand.
In both countries you can choose which KiwiSaver (New Zealand) or superannuation (Australia) fund you’d like your contributions to go to.
The differences
Both countries allow you to use your KiwiSaver or superannuation towards a deposit for your first home. However, there are differences.
Using super to purchase your first home
New Zealand – KiwiSaver
You must be in KiwiSaver for at least 3 years before you withdraw funds for your first home.
You can withdraw:
- your contributions
- you employer’s contributions
- the government contribution
- interest you have earned
- fee subsidies (if you got these)
You must leave $1,000 in your KiwiSaver fund.
Funds transferred from an Australian Complying Superannuation scheme cannot be withdrawn.
Australia – Superannuation
- You can use your KiwiSaver to purchase your first home in Australia through the Australian government First Home Super Saver (FHSS) scheme if you meet the criteria set out by the Australian Tax Office (ATO).
- With your super fund in Australia, only voluntary contributions (before or after tax) can be used towards the FHSS scheme.
- The most you can use from your KiwiSaver towards FHSS is up to AUD $15,000.
- You can save more for a house by making extra voluntary contributions. However you must make the extra contributions the following tax year.
- You can save up to AUD $15,000 per financial year, up to max AUD $50,000 over several years (per person).
How ‘super’ is paid
New Zealand – KiwiSaver
- Contributions made by you
KiwiSaver is voluntary. If you’re a salary or wage earner, you’ll voluntarily contribute either 3%, 4%, 6%, 8% or 10% out of your own pay before tax. If you do not choose a contribution rate, your employer will deduct the default rate of 3% and you’ll contribute through wage deduction. - Employer contribution
Employers also make a compulsory minimum contribution of 3% towards an employee’s KiwiSaver savings. - Government contribution
If you are contributing to a KiwiSaver scheme, the government will contribute up to $521.43 each year. However, to receive the full benefit you must have contributed at least $1,042.86 during the period of 1 July to 30 June.
Australia – Superannuation
- Employer contributions
Superannuation is compulsory. By law, employers must pay super contributions on your behalf to an approved super fund. These contributions are called ‘Super Guarantee’ (SG) and, from 1 July 2025 are 12% percent of your ordinary time earnings (in addition to your wages). - Contributions made by you
These are called voluntary contributions. You can add more money to your super either before tax (also known as salary sacrifice) or after tax (personal voluntary contribution). There are limits on how much extra you can contribute to your super per annum without paying extra tax.
Tax on super
New Zealand – KiwiSaver
- Your employer must pay tax on their 3%, so you may receive less than 3% in your account.
- Investment earnings in KiwiSaver schemes are taxed at 28%. However, if the KiwiSaver scheme you belong to is a Portfolio Investment Entity (PIE), your investment earnings will be taxed at your Prescribed Investor rates of either 28%, 17.5% or 10.5% depending on individual circumstances.
Are you now living overseas?
- If you are no longer a New Zealand tax resident, be aware that your KiwiSaver investment earnings will be taxed at 28%. If you move your money to an Australian fund that accepts KiwiSaver transfers, your earnings will be taxed at only 15%.
Australia – Superannuation
- SG contributions made by your employer are taxed at 15%.
- Voluntary and salary sacrifice contributions are taxed at the same amount.
- You may be able to claim a tax deduction for after-tax contributions.
Accessing your super
New Zealand – KiwiSaver
- You can withdraw all your KiwiSaver savings when you reach age 65.
- If you suffer significant financial hardship, you may be able to withdraw some or all of your and your employer’s contributions.
- You may be able to withdraw some, or all of your KiwiSaver funds early if your health permanently affects your ability to work or you could die.
- Moving to Australia
If you permanently move to Australia, you can transfer your KiwiSaver to a KiwiSaver accepting fund such as First Super.
Australia – Superannuation
- You can access your super once you have reached 60 and are fully retired.
- If you are aged between 60-64 and still working you may have limited access to your super through Transition to Retirement (TTR).
- When you turn 65 regardless if you are working or not.
- Under extreme circumstances you may be able to access some funds on grounds of financial hardship or compassionate grounds.
- Moving to New Zealand
If you move to New Zealand, you can transfer your superannuation (your super and KiwiSaver component) back to a KiwiSaver fund of your choice.
Insurance
New Zealand – KiwiSaver
- No insurance offered through KiwiSaver.
Australia – Superannuation
- Most superannuation funds, including First Super, have automatic insurance cover to provide a safety net for you and your family against life’s unexpected events.
- Insurance cover is paid through super and is based on your age, account balance and eligibility.
- You can also apply for Income Protection which can help pay bills if you cannot work due to a sudden illness or injury. This too can be paid through your super.
