Should you transfer your KiwiSaver to Australia?

Many people who move to Australia permanently transfer their KiwiSaver as it can lower the tax on investment earnings from 28% in New Zealand to 15% in Australia and keeps retirement savings together in one place. You may also save on administration fees by having your KiwiSaver and Super together in one account.

Whether you transfer may also depend on how long you plan to stay in Australia. There are no rules to say you must transfer and we recommend you seek financial advice before you transfer your KiwiSaver.

If you have moved to Australia permanently

If you have made the move for good there may be benefits to transferring your KiwiSaver to Australia. Your KiwiSaver stops being taxed as a New Zealand investment and starts being taxed under Australian super rules which are generally a lower rate.

You also stop managing two accounts in two countries. First Super is one of the few Australian funds that accepts KiwiSaver transfers.

  • Investment earnings in Australia are generally taxed at 15% instead of up to 28% in New Zealand
  • One account, one set of administration fees
  • One place to manage all your retirement savings
  • You may be able to use your KiwiSaver towards the First Home Super Saver scheme to purchase your first home in Australia. This is subject to eligibility.
  • Once you meet eligibility criteria, you automatically receive insurance cover for Death and Total and Permanent Disablement (TPD). You can change or cancel your automatic insurance cover at any time.
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If you move back to New Zealand

Plans sometimes change and the Trans-Tasman portability scheme works both ways.

If you move back to New Zealand, you may be able to transfer both your KiwiSaver and superannuation back to a new KiwiSaver scheme. It’s very similar to transferring your KiwiSaver over to Australia, just in reverse.

To transfer your retirement savings to a KiwiSaver scheme you must:

  • Have all your retirement savings in a complying APRA regulated superannuation fund (not an SMSF)
  • Have permanently emigrated to New Zealand. You’ll need a signed statutory declaration that you have permanently moved and proof of residence at an address in New Zealand
  • Transfer the whole balance of your retirement savings
  • Ensure the new KiwiSaver scheme can accept your Australian transfer

If you are unsure of transferring your KiwiSaver

Here are some questions to consider when thinking about transferring your KiwiSaver to Australia.

  • How long do you plan to live in Australia?
  • Are you an Australian tax resident now?
  • How much tax will you be paying on your investment earnings by leaving your KiwiSaver in New Zealand?
  • Do you want to use your KiwiSaver to purchase your first home in Australia?
  • What is the current exchange rate?
  • What fees are involved to transfer?
  • Will you exceed the transfer limit?
  • Are you close to 65 years and would like to have all your retirement savings together in one tax-free account?

How do you transfer your KiwiSaver?

If you decide to go ahead, transferring takes four steps and around two to six weeks once your KiwiSaver scheme has the paperwork. You:

We will notify you once your KiwiSaver Transfer is in your First Super account.

We’re here to help, so get in touch.

If you have any questions, please call our Member Services Team on 1300 360 988, or email us.