The New Zealand and Australian governments recently signed an agreement to allow qualifying retirement savings to be transferred between the two countries. Currently, Australian superannuation must remain in Australia until the individual turns 60. If you are one of the many Kiwis who have retirement savings stuck in Australian complying superannuation schemes, from next year you will be able to transfer your retirement funds back to a New Zealand KiwiSaver scheme.

When does the ability to transfer take effect?

The portability arrangements are expected to come into effect during the second half of 2010.

What am I allowed to do?

Broadly, the portability arrangements will allow a person who has retirement savings in both Australia and New Zealand to consolidate them in one account in their current country of residence. Members who have permanently moved from Australia to New Zealand will be able to transfer their retirement savings from an Australian complying superannuation fund regulated by the Australian Prudential Regulation Authority to KiwiSaver, and vice versa. Retirement funds transferred from one country to another will not be allowed to be transferred to a third country. No partial transfers are allowed (it must be a full transfer or no transfer).

What will the cost be?

For most Members there will be no costs. Transfers exceeding A$150,000 to Australia may be subject to tax.

I am moving to New Zealand from Australia. Can I withdraw any savings as cash?

No. Transfers of retirement savings must be to KiwiSaver. These transfers will not be able to be used for any of the KiwiSaver housing-related initiatives. However, any New Zealand sourced earnings on transferred retirement savings will be subject to normal KiwiSaver policies.

Will my transferred funds be locked into KiwiSaver?

Yes, however transferred funds held in KiwiSaver will be allowed to be withdrawn at age 60 if the Member is retired.

Will my transferred money count towards KiwiSaver Member Tax Credits?

No. Member Tax Credits will not be paid on Australian sourced retirement savings transferred to KiwiSaver.

How do I find where my Australian superannuation is invested?

If you’ve lost details of your Australian superannuation scheme, the Australian Taxation Office provides a tracking service, which is freely available on their website: www.ato.gov.au/individuals/content.asp?doc=/Content/16442.htm. 

What about transfers from the UK to New Zealand?