Transfer Australian Super to KiwiSaver

Have you worked in Australia and contributed to the ASG (Australian Superannuation Guarantee) system?

Under current rules, Kiwis who have worked in Australia and who return to New Zealand to live must leave their compulsory superannuation savings in Australia until retirement age.

In 2009 both the New Zealand and Australian governments agreed in a “memorandum of understanding” to allow returning Kiwis to transfer their Aussie superannuation savings back to New Zealand—provided the funds are transferred to a registered KiwiSaver Scheme. Australians living in New Zealand and contributing to KiwiSaver accounts will likewise be able to transfer their KiwiSaver savings to a registered Aussie superannuation scheme.

The new rules will apply once Australia has enacted the necessary legislation (the New Zealand legislation was enacted in 2010).

June 2011 Update From Australia

The Australian Treasury Office has advised that they are still working on draft legislation on their side, with a consultation draft expected to be circulated in September/October.  After that is finalised, the Australian and New Zealand governments will ‘exchange notes’, and transtasman portability will come into effect two months after that.

The key features are:

  • Participation will be voluntary.
  • Savings may only be transferred between a KiwiSaver scheme and an Australian complying superannuation fund.
  • A KiwiSaver member must permanently emigrate to Australia to be able to transfer their savings there.

If you worked in Australia, and your superannuation manager hasn’t been able to contact you since you moved back to New Zealand, there is a good chance your savings have been added to the “lost” accounts of their system.  The Australian Tax Office estimated that it had about $16 billion in these “lost” accounts. Also, if you had more than one job in Australia, chances are that you have several superannuation accounts –potentially getting whittled away by fees if their balances are low.

What can you do now?

Get yourself ready to make the most of the upcoming changes. Make sure you check for your lost accounts for free via the Australian Tax Office website. You will need your Australian Tax File Number to search (if you can’t locate this, download the Searching For Lost Super form).

If you have more than one superannuation account in Australia you may be able to “rollover” your accounts into one consolidated account now to minimise fees or in preparation of transferring these funds to your KiwiSaver account next year.

Would you like more information?

There is an excellent FAQ on IRD‘s Taxpolicy website.
And you can read the formal agreement here.

June 2011 Click here for the latest update on transferring your Australian Superannuation