KiwiSaver to Australia: Buy Property Guide

By
Chris Dodson
January 21, 2025

If you’ve worked in New Zealand and now live and work in Australia, you can transfer your KiwiSaver to an Australian superannuation fund. Consolidating your KiwiSaver and superannuation into a single account makes managing your retirement savings easier and more efficient.

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Bring Your KiwiSaver Across the Ditch to Australia

If you’ve worked in New Zealand and now live and work in Australia, you can transfer your KiwiSaver to an Australian superannuation fund. Consolidating your KiwiSaver and superannuation into a single account makes managing your retirement savings easier and more efficient.

Why Transfer Your KiwiSaver?

Leaving your KiwiSaver in New Zealand could cost you more in taxes and fees:

  • Higher Tax Rate: Investment earnings in New Zealand are taxed at 28% annually. By transferring to an Australian super fund, this drops to just 15%.
  • Reduce Admin Fees: Combining your KiwiSaver with your Australian super means only one set of administration fees. Plus, you’ll benefit from the power of compound interest.

Before You Transfer – Key Considerations

  1. Not All Funds Accept KiwiSaver Transfers
    First Super is one of the few Australian super funds that accept KiwiSaver transfers. It’s not mandatory for Australian funds to provide this service, so options are limited.
  2. Transfer the Full Balance
    Under current rules, you must transfer your entire KiwiSaver balance at once.
  3. Limited Movement
    Once in Australia, your KiwiSaver balance can only be moved between Australian funds that accept KiwiSaver or back to a KiwiSaver fund in New Zealand.

Steps to Transfer Your KiwiSaver

Transferring your KiwiSaver to First Super is simple and takes just a few weeks. Here's how it works:

  1. Gather Documentation: Ensure all necessary forms and identification are ready.
  2. Apply to Transfer: Submit your KiwiSaver transfer application to First Super.
  3. Approval Process: Your KiwiSaver fund will process the transfer and notify you once the funds are sent.
  4. Funds Conversion and Allocation: The funds will be converted to Australian dollars, and investment earnings will be backdated to the transfer date.

You’ll receive confirmation from First Super once your KiwiSaver is successfully transferred and visible in your Australian account.

Using KiwiSaver for Your First Home in Australia

Great news! Even if you already own property in New Zealand, you may still qualify for Australia’s First Home Super Saver (FHSS) scheme. This scheme allows you to use personal voluntary contributions from your superannuation account to save for your first home in Australia.

How It Works:

  • KiwiSaver transfers count as personal voluntary contributions under the FHSS scheme.
  • The maximum you can access is $15,000 per financial year, with a total cap of $50,000 per person. Couples can combine their savings for up to $100,000.
  • To maximize your FHSS savings, make additional voluntary contributions to your super account after transferring your KiwiSaver.

Important Note:

You must apply for FHSS through the Australian Taxation Office (ATO) and receive approval before signing any property contracts. Any funds saved through the FHSS will remain in your super account if you decide not to purchase a home.

How Much Can You Transfer?

Your entire KiwiSaver balance must be transferred, but certain rules apply:

  • Transfers are considered personal after-tax contributions, subject to limits.
  • The current annual limit is AUD $120,000, but the Bring-Forward Rule allows up to AUD $360,000 in one year by borrowing from future contribution limits.
  • Exceeding these limits may result in excess contribution tax.

Why Choose First Super?

First Super is one of the few Australian Prudential Regulation Authority (APRA) superannuation funds that accept KiwiSaver transfers. With competitive fees, tax advantages, and support through the transfer process, it’s a great choice for Kiwis making the move to Australia.

Take the Next Step

At Mortgages Plus, we specialize in helping Kiwis settle into their new lives in Australia. From transferring KiwiSaver to securing the right mortgage, we’re here to guide you every step of the way.

Contact us today to get started on your KiwiSaver transfer and learn more about how we can help you achieve your financial goals in Australia.

Chris Dodson
Founder, Mortgages Plus