If you’re planning a permanent move between New Zealand and Australia, you may be wondering what happens to your superannuation or KiwiSaver savings. The Trans-Tasman Retirement Savings Portability Scheme allows you to transfer retirement savings between the two countries under certain conditions. Here’s what you need to know.

Key Points to Consider

Voluntary Participation
The scheme is optional for individuals, Australian superannuation funds, and KiwiSaver providers. Not all providers participate, so it’s essential to confirm with your current fund or scheme. Only APRA-regulated super funds and KiwiSaver providers can facilitate transfers.

Transferring from Australia to New Zealand

  • Eligibility:
    • You must be under 65 years old (NZ’s retirement age).
    • Evidence of permanent emigration to New Zealand is required.
  • What Can Be Transferred:
    • Your entire balance from an APRA-regulated super fund.
    • Possible inclusion of ATO-held unclaimed super money.
    • Exclusions: SMSFs and certain interests.
  • Where Can You Transfer:
    • To any participating KiwiSaver scheme.
  • Contribution Caps:
    • No limits on transfer amounts, as NZ has no contribution caps.
  • Tax on Transfers:
    • Transfers are not taxed, and withdrawals are tax-free once you’re eligible.
    • Consult a financial advisor for any NZ tax implications.
  • Access to Funds:
    • Transferred savings cannot be used for first-home purchases.
    • Funds are split:
      • Australian component accessible at age 60 if retired.
      • NZ component accessible at age 65.
    • Funds cannot be transferred to a third country if you move again.
  • Returning to Australia:
    • You’ll need a fund that accepts KiwiSaver transfers.

Ensure proper documentation of the savings components to avoid tax penalties.

Transferring from New Zealand to Australia

  • Eligibility:
    • You must be under 75 years old.
    • Evidence of permanent emigration to Australia is required.
  • What Can Be Transferred:
    • Your entire KiwiSaver balance.
  • Where Can You Transfer:
    • To any APRA-regulated super fund that accepts KiwiSaver transfers.
    • Transfers to SMSFs are not allowed.
  • Contribution Caps:
    • NZ-sourced savings are treated as non-concessional contributions and subject to caps.
    • Exceeding the cap may result in additional tax or the need to release excess amounts.
  • Tax on Transfers:
    • Transfers are tax-free, and withdrawals are tax-free in retirement.
  • Access to Funds:
    • Funds are split:
      • Australian component accessible at age 60 if retired.
      • NZ component accessible at age 65.
    • Funds cannot be transferred to a third country if you move again.
  • Returning to New Zealand:
    • You’ll need to find a KiwiSaver scheme that accepts Australian super transfers.
    • Rules for transfers from Australian super funds will apply.

Final Thoughts Understanding the rules and conditions of the Trans-Tasman Retirement Savings Portability Scheme is crucial for managing your retirement savings during a move. Seek professional advice to ensure compliance and maximize your financial outcomes.