moving your kiwisaver funds to an Australian Super Fund
If you are an expat new Zealander and you call Australia your home, you might be one of thousands who has Kiwisaver retirement savings. Now, like most, you would think that moving them to an Australian Super Fund would be an easy thing?
Well, its not that simple and its not that easy. It turns out that there are only three funds that allow transfers of kiwisaver retirement savings and then there are the New Zealand retirement and tax rules ,and Australian super and tax rules, to be mindful of, which can make the transfer more complicated.
Here are some steps to consider:
- Identify a suitable fund. SMSF’s and most Australian super funds do not accept Kiwisaver transfers
- Provide the fund your Australian tax file number and your NZ IRD number and Kiwisaver rollover form
- Only the whole balance can be transferred which needs to be below your non concessional contribution limit
- The amount cannot exceed your Australian non concessional contribution limit per person
- You may be able to transfer the original kiwisaver funds back to New Zealand should you return to New Zealand
- Kiwisaver sourced funds,cannot be transferred to a SMSF or to another country and all income or earnings are taxable and form part of the taxable component in your super fund
The non concessional contribution cap limit per person is $100,000 per financial year.Further, your Kiwisaver funds are preserved till age 65 which is when you can access them as a pension payment. Most Australians can access their super via a pension from age 55 – 60 and just like with the contribution of taxed monies into Australian super accounts, all kiwisaver monies are non taxable on withdrawal by dependents and non dependents and form part of the tax free proportion within your super fund.
Its important to consider the benefits gained and lost when transferring retirement savings and importantly the tax consequences to all beneficiaries and the available options to access to these funds. Seeking advice is the best way to manage your Kiwisaver transfers.
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