|Chartered Accountants North Shore
By Shelley-ann Brinkley – 18 February 2014

The Revenue Minister Todd McClay has today announced a change to the Foreign Super Bill which will benefit those New Zealanders who are in the process of transferring their foreign super savings to New Zealand or Australia.

The change will mean that those people who have started the transfer process but do not physically receive the funds by 31 March 2014 can still take advantage of the 15% transitional option.

Previously, the Bill required the funds to have been physically received into New Zealand or Australia by 31 March 2014 in order to be able to apply the 15% option.

Instead, individuals will simply need to show that the transfer process was started prior to 1 April 2014, such as by way of lodged application documents.

Concern had been raised about this strict time requirement given it can often take 3 – 6 months to finalise a transfer. 

It is good to see that Policy officials have listened to concerns and amended the draft legislation accordingly.  The draft legislation is expected to be enacted within the next week.

Many factors need to be considered before choosing to transfer foreign super funds to New Zealand (or Australia), and in fact the 15% option may not be the best choice depending on your specific situation.

For more details on the above, or to discuss the tax implications of transferring your overseas super fund, please contact our specialist tax team.

Shelley-ann BrinkleySenior Manager – Tax Consulting
T +64 9 414 5444
E shelley-ann.brinkley@hayesknight.co.nz

Phil Barlow
Tax Director
T +64 9 414 5444
F +64 9 414 5001
E phil.barlow@hayesknight.co.nz