Transferring your Australian Superannuation to your KiwiSaver account
If you have worked in Australia in since 1992 you are likely to have one or more Australian superannuation accounts. Some of our clients have had 10-15 different superannuation accounts!
If you are planning on living permanently in New Zealand and retiring in New Zealand, it could be worth considering bringing your Australian Superannuation funds back to New Zealand.
As the Australian Superannuation is ‘locked in’, you can only bring the funds back under the relevant ‘Trans-Tasman portability’ legislation. This allows for you to add your Australian Super funds to your KiwiSaver account if your Australian scheme is a ‘complying superannuation fund’. Most KiwiSaver schemes permit you to bring your funds back, but make sure you check with your scheme first.
Your Australian provider(s) will be able to confirm if your Australian fund(s) can be transferred to a KiwiSaver scheme.
When the funds are brought back to your KiwiSaver account, they have to be ‘ring-fenced’ by the KiwiSaver manager. This money is not available to be withdrawn for your first home purchase.
Why would you transfer your funds?
Keep track of your retirement savings and have more control on where it is invested
Our clients that have brought their Australian super back see the big advantage as having all the funds in one place, and knowing what they have. Particularly when they have several Australian super accounts, as well as a KiwiSaver scheme.
Save on fees
You may be paying unnecessary administration fees and insurance premiums from your Australian super – all of which can eat away at your savings.
Know how much you have in local currency
With all your retirement savings in one place, you’ll know exactly how much your retirement savings are worth in your home country.
What are the issues that you need to take into account in making your decision?Investment options
In New Zealand, you are only entitled to have one KiwiSaver account. Depending on your KiwiSaver provider, you may have more limited options for investment than you have through your Australian superannuation. It is important that you take this into account and make sure that you are able to retain any flexibility that you currently have, is this is important to you. Moneyworks can help you to review your options in New Zealand for KiwiSaver, to ensure that you have the most appropriate investment options for you.
You might have life, illness or accident insurance associated with your Australian Superannuation. If you have insurance cover attached to your Australian super accounts, your cover may cease if you transfer your Australian retirement savings to a KiwiSaver scheme.
You should make sure that you put in place any cover that you need, that will disappear when you move your Australian super, BEFORE you make the transfer. Moneyworks will help you arrange this..
Tax and other rules
The rules which apply to Australian super schemes and KiwiSaver schemes are different. The ways in which your savings are taxed, and the applicable tax rates, are different.
You may end up paying more tax on the income on your fund when they are in KiwiSaver than if you leave them in your existing Australian Superannuation fund.
However, it is important that you weigh up the pro’s and con’s of all the issues and benefits when you make your decision. Moneyworks will help you with looking at these options as part of your financial planning.
What if you don’t know where your Australian Superannuation is?
If you aren’t sure whether you have any Australian Super, or you aren’t sure who your Australian Super provider is, you can use the Australian Tax Office to help you find your super.
To start this process, click on the button below.
What if your Australian provider won’t transfer your funds to KiwiSaver?
It is not compulsory for Australian providers to transfer your funds to KiwiSaver. If your scheme is one that does not have this facility, ANZ have established a solution for you. Moneyworks can assist you with setting this up. Find out more by looking at the solution here: ANZ Smart Choice Super solution.
What is the process of transferring?
The process is quite administrative. It is vital that you get the correct documents witnessed and provide all the documents at the start of the process. Otherwise, the process can take a long time. We have helped a number of clients to transfer their funds, and can assist you, as part of your financial planning, in making sure that you have the boxes ticked and all the relevant documents organised for your transfer.
If you want some assistance in transferring your Australian Superannuation to your KiwiSaver account, as part of your financial planning, contact us by clicking on the button below.