Can you take your KiwiSaver to Australia?
Yes. If you move to Australia, you're able to take your KiwiSaver with you, by transferring your KiwiSaver into an Australian superannuation scheme.
Aussie super funds are the equivalent of NZ's KiwiSaver schemes. Once in Australian super, your money becomes accessible according to Australia's super regulations.
However, if you decide to leave your KiwiSaver in New Zealand, it will remain in your chosen scheme and your provider will continue to make investments on your behalf, hopefully growing your nest egg.
The only difference will be that unless you make voluntary payments, or remain employed by an NZ employer and paid in New Zealand, no-one will contribute to your KiwiSaver.
If you move overseas (not to Australia) permanently, after one year, you are eligible to withdraw most of your KiwiSaver contributions. You can get more information here.
Why transfer KiwiSaver to an Australian Super?
Benefits
If you plan to settle in Australia permanently, it could pay to transfer your KiwiSaver across the ditch. Some of the benefits can include:
- Potential to reduce fees – if you have an Aussie superannuation fund and KiwiSaver, you'll pay two sets of fees. By combining them, you will pay just one
- Single fund easier to manage – if your investments are in one place, it's quicker and easier to check your balance, investments and their performance. Having all your money with you in Australia also means that you don't have to worry about, or keep up-to-date with, any changes to KiwiSaver back in NZ
- Lower tax rate – most Australian super contributions and earnings are taxed at 15%. Which is lower than the tax most wage earners will pay on their KiwiSaver. So by transferring your KiwiSaver across, you could save money. This is a general rule, and it will vary depending on your circumstances. So it could be prudent to speak to a financial specialist
- One currency means a clearer understanding of your balance – you don't have to worry about shifting exchange rates
- There is no entry/exit tax – on super/KiwiSaver funds transferred between AU and NZ
Other factors to consider
Aside from the potential benefits listed above, it may also pay to consider some other factors. Such as:
- First home withdrawal – Australian super allows you to use funds transferred from KiwiSaver towards a first home purchase. However, employer contributions cannot be used, and you can only use a max of AU$50,000 per person. KiwiSaver allows you to use your entire balance as long as $1000 remains in your KiwiSaver account.
- Charges – while you don't have to worry about entry/exit taxes when transferring your KiwiSaver funds to Australia, your KiwiSaver provider may charge fees for transferring your funds. Additionally, your super provider may have charges for accepting them. Be sure to check these first.
- Transfer amounts – you cannot do partial transfers, so if you do wish to transfer your KiwiSaver to Australian super, it must be the whole amount.
- Retirement age – the portion of your Kiwi super balance that you transfer remain accessible according to New Zealand's retirement age and requirements. Not Australia's. Currently, they are the same. But if either country lifts its retirement age, it will affect access to your funds
What Australian supers accept KiwiSaver transfers?
Australia has a wide range of superannuation providers to choose from. Super funds that accept transfers from Kiwisaver include:
- First Super
- TelstraSuper
- Verve Super
How to transfer KiwiSaver to Australian Super
If you want to transfer your KiwiSaver to Australian super, you must:
Check with your KiwiSaver and super providers
To transfer your KiwiSaver fund to an Australian super fund you must first have complying funds. Not all KiwiSaver providers permit transfers, and not all super providers accept them. If either don't, you may need to change to a complying provider before making the transfer.
Request to make the switch
Once you've checked that your funds on both sides of the Tasman facilitate balance transfers, you need to ask your KiwiSaver provider to make the transfer. Individual providers will have their own processes, but it's likely that you'll need to provide:
- A request form to transfer your super
- Proof of your identity (ID)
- Proof of residence in Australia
- A TFN number (the Australian equivalent of your IRD number)