Super portability between Australia and New Zealand
From 1 July 2013, 'trans-Tasman retirement savings portability' rules allow Australian and New Zealand residents to transfer their retirement savings when they move between Australia and New Zealand and are a permanent resident of the other country, while maintaining the integrity of the retirement savings systems of both countries.
It is important to note that the foreign superannuation rules discussed earlier in this section (eg taxation of applicable fund earnings) do not apply to trans-Tasman
retirement savings portability.
Introduction to portability rules
Eligible individuals can transfer their retirement savings between Australian complying superannuation funds and New Zealand KiwiSaver schemes. The transfer of the funds is voluntary for individuals and funds or schemes are also not obligated to offer or accept these transfers.
Australian super savings that include a New Zealand-sourced amount can only be transferred to and held in complying superannuation funds that are regulated
by the Australian Prudential Regulation Authority (APRA).
Once funds are transferred from the source country to the host country:
- Retirement savings will be subject to superannuation and taxation rules applicable to host fund or scheme, with some exceptions (eg access to retirement savings).
- Transferred amounts from the source country must be separately identifiable as either Australian or New Zealand sourced amounts.
- Reductions and/or payments from a member's account balance will be applied to balances that were accrued in the host country, prior to being applied to balances from the source country.
- New Zealand-sourced amounts being transferred to Australia for the first time will count towards non-concessional contributions cap.
The following are not allowed under trans-Tasman retirement savings portability:
- Retirement savings that contain a New Zealand sourced amount cannot be transferred to a SMSF.
- Transfers of the following to New Zealand:
- Defined benefit interests.
- Unfunded public sector scheme interests.
- Payments that contain taxable component (untaxed element).
Summary of super portability rules
|Transfers from New Zealand to Australia||Transfers from Australia to New Zealand|
|Who is eligible?||
|What can be
|Where can it
|Accessing funds after transferring||
Last modified: Wednesday, July 24, 2019