The Australian Government has finally completed legislative steps to allow New Zealanders to transfer their retirement savings between complying Australian superannuation schemes and New Zealand Kiwisaver schemes.
The New Zealand Government had passed the necessary legislation back in 2010 and with Australia’s legislation now in place, the trans-Tasman super portability scheme came into effect on 1 July 2013.
The key points of the scheme are:
- Transfer of retirement savings between Australia and New Zealand will be exempt from any entry and exit taxes.
- Participation is voluntary for KiwiSaver members and scheme providers.
- Retirement savings may only be transferred between a KiwiSaver scheme and an Australian complying superannuation scheme regulated by the Australian Prudential Regulation Authority (APRA).
- A KiwiSaver member must permanently migrate to Australia to be able to transfer their retirement savings.
- Any KiwiSaver member tax credits and the $1,000 kick-start payment may be transferred to Australia.
- A KiwiSaver member will not be able to withdraw any retirement savings in cash upon permanent migration to Australia (as can be done one year after the person migrates to a country other than Australia).
- An amount of Australian-sourced retirement savings transferred to a KiwiSaver scheme under the portability arrangements will be treated as exempt from tax at the point of entry.
- Australian-sourced retirement savings will be subject to certain Australian complying scheme rules, including a minimum retirement age of 60. These savings cannot be withdrawn to purchase a first home.
For more information refer to the Policy Advice Fact Sheet at the link below:
If you have any questions regarding the Trans-Tasman Retirement Savings Portability Scheme, please contact your Hayes Knight adviser or our Tax Team:
Shelley-ann BrinkleySenior Tax Manager
T +64 9 414 5444
Phil BarlowTax DirectorT + 64 9 414 5444