AU Superannuation Advice
“A journey of a thousand miles begins with a single step”. Lao-Tzu
If you have worked in Australia and have returned permanently to NZ you may want to consider a transfer
A common theme that occurs with our clients is that each time a person changes jobs they get another superannuation scheme. These can start to add up. It can be nearly impossible to keep track of. Over time all the schemes you’re involved in can add up 1,000s of dollars but end up as unclaimed money with the Australian Tax Office if you do nothing.
Considerations when transferring Australian Super to NZ
You are able to transfer your Australian super fund(s) to NZ and this must be invested into your NZ KiwiSaver account. The current age of entitlement in Australia is 60. Any Australian funds transferred to your KiwiSaver investment are ring-fenced and accessible at the Australian age of entitlement without penalty in NZ.
Once funds are transferred to NZ they cannot be transferred to a third jurisdiction, although if you returned to Australia to work they could be transferred to an approved Australian fund.
In Australia, your funds are taxed at a maximum concessional super tax rate of 15% and in NZ you will be taxed at your Prescribed Investor Rate (PIR), which ranges from 10.5% to 28% depending on your declared income. There is no tax payable on transfer to NZ nor upon withdrawal at retirement age in NZ.
Importantly you should seek professional advice before making any decisions.