If you’ve worked in Australia, you may have superannuation sitting in an Australian fund. Since 2013, trans-Tasman portability has let people who have permanently moved from Australia to New Zealand transfer their Australian super into a KiwiSaver scheme, and KiwiSaver members who move permanently to Australia transfer the other way.
If you've permanently moved from Australia to NZ, you can transfer Australian super from an APRA-regulated fund into a KiwiSaver scheme that takes part. Inland Revenue says the transferred amount is exempt from tax when it enters KiwiSaver. The Australian-sourced savings keep some Australian rules: they can be withdrawn from age 60 if you're retired, can't be used for a first home (earnings on them can), and don't earn the government contribution.
How Trans-Tasman Super Portability Works
Inland Revenue’s guidance on the portability arrangements sets out the main rules:
- You must have permanently moved from Australia to New Zealand
- Participation is voluntary for KiwiSaver members and for scheme providers, so your KiwiSaver provider (and your Australian fund) must agree to take part
- Savings can only move between a KiwiSaver scheme and an Australian complying superannuation scheme regulated by APRA (the Australian Prudential Regulation Authority); other NZ superannuation schemes can’t take these transfers
- Portability works both ways: a KiwiSaver member who moves permanently to Australia can transfer to an Australian complying fund (see withdrawing KiwiSaver when leaving NZ)
Which KiwiSaver Schemes Accept Australian Super Transfers?
Providers choose whether to accept transfers from Australia, so ask your KiwiSaver provider directly whether it does and for its transfer form. One provider says there are no limits on how much you can transfer, but check the terms with both your Australian fund and your KiwiSaver provider.
Tax Treatment of the Transfer
Inland Revenue says an amount of Australian-sourced retirement savings transferred to a KiwiSaver scheme under the portability arrangements is treated as exempt from tax at the point of entry. The arrangements are designed so that transfers between the two countries are free of entry or exit taxes.
Once the money is in KiwiSaver, investment returns are taxed inside the fund, at your PIR if your scheme is a portfolio investment entity (PIE). Transferring Australian super to KiwiSaver covers the KiwiSaver side in more detail.
Rules That Still Apply to Transferred Savings
Inland Revenue says the principal amount transferred from Australia stays subject to some Australian rules; earnings on it and later contributions follow the KiwiSaver rules.
| Rule | Australian-sourced savings in KiwiSaver |
|---|---|
| Earliest withdrawal | Age 60, if you’re retired (as Australian law defines retirement); otherwise the usual KiwiSaver age of 65 |
| First home withdrawal | The transferred savings can’t be used; earnings on them can |
| Government contribution | Not paid on the transferred savings, and they don’t count towards the amount you need to contribute each year |
| Moving overseas later (not Australia) | An emigration withdrawal is reduced by the Australian-sourced savings |
Points to Weigh Up
These are the differences people commonly look at; which matters depends on your situation, and a licensed adviser can look at your own case.
- One account or two: transferring puts your retirement savings in one place
- Access age: left in Australia, super can be accessed from 60 if you’re retired or leave a job, and from 65 whether or not you’re still working (Moneysmart; the preservation age is 55 to 60, depending on when you were born). Transferred to KiwiSaver, the Australian-sourced savings can come out from 60 if you’re retired
- Currency: the money is converted to New Zealand dollars at the exchange rate on the day it enters New Zealand, so the NZ dollar amount depends on the rate that day
- Fees and fund choice: compare what your Australian fund and your KiwiSaver fund charge each year
- Lost super: before transferring, check whether you have other Australian super accounts you’ve lost track of
The Transfer Process
- Join a KiwiSaver scheme that accepts Australian super transfers, if you aren’t already a member
- Ask your KiwiSaver provider for its Australian super transfer form
- Provide the evidence your provider asks for, including that you’ve permanently moved to NZ and details of your Australian fund
- The funds are transferred: timing varies by fund and provider (one KiwiSaver provider says the whole process usually takes around two months), and your provider lets you know once the money has been applied to your account
Australian Super You Cannot Transfer
Only an Australian complying superannuation scheme regulated by APRA can transfer to KiwiSaver under the portability arrangements. If your super is in a fund that isn’t APRA-regulated, or your fund doesn’t take part, it can’t be moved this way; check with the fund.