Aussie Super Transfers to NZ

Initial Considerations

There are three good reasons to consider bringing your Australian superannuation to New Zealand:-

• Reduced fees - if you’ve got Australian super and KiwiSaver, you’re probably paying two sets of fees. Combining the two may reduce your overall costs.
• No entry or exit taxes - currently there are no entry or exit taxes charged when transferring your Australian super funds
• Easier management - having all your investments in one place will make keeping track of your savings easier

Before you do anything, it’s a good idea to get some financial and tax advice because different investment and insurance options, fees, currency exchange rates and tax might have an impact on your transfer.

We can provide this advice to you!

Disadvantages of Moving Australian Super to NZ

Australian funds can't be used for KiwiSaver First Home Withdrawal
You can't use your Australian super funds to purchase your first home. 

Limited diversification
In New Zealand, you are only entitled to have one KiwiSaver account so you may find yourselves with minimal investment choice, with your one chosen provider. This is especially true if you have more than one Australian Super.

Insurance cover
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 will likely cease if you transfer your Australian retirement savings to a KiwiSaver scheme.

Tax and other rules
Earnings on Aussie super are taxed at a flat 15%, but there are discounts for long-term capital gains, and various tax credits associated with share income. For a growth fund, the effective tax rate might work out more like 6 or 7%. By contrast, KiwiSaver earnings are taxed at a rate of 10.5%, 17.5%, or 28%, depending on your income. While that's much higher than Australia at first glance, there's effectively no capital gains tax on local and Australian shares, which also often come with credits attached to offset dividend income. If your KiwiSaver fund mostly holds Australasian shares, you might end up paying very little tax indeed.