Transferring & Merging KiwiSaver and Australian Super – The Definitive New Zealand Guide

Our guide explores the pros, cons, and key considerations of transferring and merging KiwiSaver and Australian Super balances. We detail the transfer process and answer common questions to help you make an informed decision.

Updated 19 August 2024

Summary:

One of the biggest benefits of the New Zealand passport is the ability to live and work unrestricted in Australia, thanks to SCV 444. Additionally, as the labour market becomes increasingly global, it's common for New Zealanders to work across both countries.
For New Zealanders who have worked in Australia, this often means having KiwiSaver and Australian Superannuation (Australian super) balances.
Managing multiple retirement accounts can be complex and costly, leading many New Zealanders to consider whether consolidating their funds is possible (and if it should be done). However, there’s no clear consensus on the right way to do this.
Some advisors recommend keeping them separate for tax drawdown reasons, while others suggest merging them under one provider. This conflicting advice has caused a lot of uncertainty among New Zealanders who have worked in both New Zealand and Australia.
Figuring out the optimal structure is essential for reaping the rewards in the future. This guide explores whether New Zealanders should merge their KiwiSaver and Australian Super balances, the feasibility of such a merger, the Australian super funds that facilitate this process, and other frequently asked questions.

Our guide covers:

Disclosures:

We use the term "merge" a lot in the guide below, but it's important to note that it's not possible to add both balances into one "mixed KiwiSaver and Australian Super account" - these balances can stay with one provider but must be kept separate (ring-fenced) for tax and regulatory purposes.
Guidance from both the ATO and the IRD at the end of this guide explains this further.

This guide covers both scenarios for:

New Zealanders who worked in New Zealand and are currently working in Australia (and have KiwiSaver and Australian Super) and want to merge them into an Australian super provider.
New Zealanders who worked in Australia and are currently working in New Zealand (and have KiwiSaver and Australian Super) want to merge them into a New Zealand KiwiSaver provider.

The majority of the “rules or restrictions” listed in the rest of the guide below apply specifically to the transferred lump sum but not to the investment returns generated from that lump sum (which are usually more moveable and transferable and have less stringent restrictions on flow).

However, the majority of interest will likely be from New Zealanders who want to redomicile their Australian Super back to New Zealand. As such, more analysis will be done on the mechanics of bringing Australian Super to New Zealand than the reverse.

Know This First:

Transfers are generally tax-free: KiwiSaver transfers are tax-free and do not count as contributions for eligibility for the Australian government's super co-contribution for low-income earners or the spouse contribution tax offset.
Not every KiwiSaver (or Australian super) provider will accept transferred superannuation savings: It is not mandatory for KiwiSaver or Australian super providers to accept superannuation transfers between countries (given that it's an additional cost and administrative time burden—the New Zealand and Australian Governments do not enforce this).
Make sure you check whether your current KiwiSaver or Australian super provider has the functionality to transfer superannuation savings to/from Australia or New Zealand.

MoneyHub Founder Christopher Walsh explores the common question "Should I transfer my Australian Superannuation to KiwiSaver?":

"Depending on your circumstances, what is right for someone may not be right for another. You'll need to consider the following:

Check insurance policies: You may want to consider cancelling any insurance policies tied to your Australian super, as they usually become invalid after living outside Australia for more than six months. This can help reduce fees.
Monitor the superannuation account: Keep your Australian myGov login accessible and regularly check your account.
Ease of access in the future: Transferring to KiwiSaver can simplify access later in life, avoiding potential hassles like verifying your identity with the ATO, managing outdated contact details, and needing an Australian phone number for two-factor authentication.
Fees and returns comparison: Australian superannuation may have better returns or lower fees, so it could be financially advantageous to leave it there. However, the extra effort and risk of complications in the future might outweigh these benefits. If you don't plan to live in Australia again, consolidating everything into KiwiSaver might be more practical, even if it means slightly lower returns.
Final decision factors: When deciding whether to transfer your super to KiwiSaver or keep it in Australia, consider your long-term goals, ease of management, and potential future complications".

Christopher Walsh
MoneyHub Founder

The Basics: What is KiwiSaver and Australian Superannuation?

KiwiSaver is New Zealand's voluntary, work-based savings initiative designed to help New Zealanders save for retirement. Contributions are made by employees, employers, and the government. The funds in KiwiSaver can be accessed at the age of 65 or upon retirement.

Australian Superannuation is a compulsory retirement savings system in Australia. Employers must contribute a minimum percentage of an employee's earnings to a Super fund, and employees can also make additional contributions. Superannuation savings can generally be accessed when the individual reaches their preservation age, which ranges from 55 - 60, depending on the date of birth.

Know This: Is It possible to merge KiwiSaver and Australian Super balances?

Yes - the Trans-Tasman Portability Scheme, implemented in 2013, allows retirement savings to be transferred between KiwiSaver and Australian Superannuation. This scheme enables New Zealanders and Australians to consolidate their retirement savings when they move permanently between the two countries.
However, there are some restrictions, rules and policies you need to know when transferring KiwiSaver or Australian super accounts:

Transferring KiwiSaver or Australian super accounts

Home Purchase Restrictions

In terms of property purchase rules, you cannot use Australian Super to buy a house in New Zealand or Australia. KiwiSaver, however, allows you to use funds to buy a house in New Zealand, though there are restrictions on using it for overseas properties. You may also withdraw investment returns on these funds for this purpose (e.g. the entire sum, though poor market performance could impact the amount available.

If you contribute more than the minimum to Australian Super, you can withdraw those excess contributions under the First Home Super Saver Scheme to purchase a home.

Accessibility and Withdrawal Eligibility Differences

If you transfer your Australian Super to KiwiSaver, your ability to withdraw funds depends on meeting Australia's definition of retirement. Australian Superannuation can be accessed once you reach 60 years of age and meet the Australian criteria for "retired." This is earlier than the current KiwiSaver eligibility age of 65, allowing you to access the Australian-transferred portion of your KiwiSaver savings if you opt for early retirement.

Free Reversal (Open Door Policy)

If you move back to Australia, you can transfer your KiwiSaver balance to an Australian super fund. Before completing the paperwork, confirm with your preferred Australian provider if they accept New Zealand-sourced transfers.

Emigration Restrictions (if moving to a country that’s not New Zealand or Australia)

Be aware that transferring your superannuation savings to New Zealand is generally irreversible unless you later decide to move back to Australia permanently. Additionally, some rules specific to Australian Superannuation will still apply after the transfer.

If you emigrate to another country after being away from New Zealand for over 12 months, you can withdraw your KiwiSaver balance as a cash payment, but this excludes government contributions and transferred Australian super funds.

Withdrawal for Hardship or Illness

If you transfer your savings from Australia, they will be subject to KiwiSaver rules and regulations regarding significant financial hardship and access to serious illness. Similarly, New Zealand savings transferred to Australia will follow Australian regulations for financial hardship and serious illness.

Unclaimed Australian Super Funds

Accounts belonging to 'lost' members or those inactive for five years with a balance of A$2,000 or less are transferred to the Australian Tax Office (ATO), where they accrue interest at the Australian CPI Rate. Balances over A$2,000 remain with the existing Australian super fund.

Unclaimed Australian superannuation funds can be transferred directly from the ATO to your KiwiSaver scheme if you meet the following conditions:

You have an active KiwiSaver account.
You are a New Zealand resident.

To initiate the transfer, you’ll need to fill out the Application for transfer of ATO-held USM to New Zealand form and submit it to the ATO at the address provided on the form. The ATO processes applications twice a year, typically in February and August. For further details, visit the Australian Tax Office (ATO) website.

Tax Implications

The tax rules of the destination country will govern transferred funds. Earnings from Australian super schemes are generally taxed at 15%, while KiwiSaver investment earnings are taxed at your Prescribed Investor Rate (PIR) of 10.5%, 17.5%, or 28%.

Another point to consider is that some recent migrants are contributing to KiwiSaver and not making additional contributions to Australian Super due to the inability to claim tax back on voluntary contributions in New Zealand. While there are nuances such as this, we recommend consulting with an account or tax advisor for your specific situation.

Ring-fenced Government Contribution

The one-time Australian Super transfer does not qualify as a KiwiSaver contribution for the purpose of the annual Government contribution. This means if you want the $521 government credit, you’ll need to contribute around $1,043 in additional funds - your Australian transfer won’t count.

Ring-fenced UK Pension Funds

Any UK pension funds included in your Australian Super cannot be transferred to New Zealand KiwiSaver funds. Our dedicated guide to UK pensions has more information.

Accessing Money from Transferred Australian Superannuation in New Zealand:

Can I access funds for:	Australian Superannuation moved to New Zealand	Investment returns on Australian Superannuation moved to New Zealand
Retirement	If you meet the legal definition of "retirement" in Australia, you can withdraw the money you transferred to New Zealand from age 60 onwards.	Generally, you can access investment returns on the balance you moved to New Zealand when you reach age 65.
Buying a first home	You can't access the Australian money you transferred for the purchase of a first home.	You can likely access investment returns on the balance you transferred from Australia to purchase a first home.
Financial hardship (You’ll need to prove it is significant)	You can withdraw Australian-sourced money if you're eligible to withdraw due to significant financial hardship.	You can take out investment returns on the money you moved from Australia if you're eligible to withdraw due to significant financial hardship.
Emigration (permanent) from New Zealand overseas (to a country that is NOT Australia)	Australian-sourced money can't be transferred to a country other than New Zealand and Australia.	Investment returns on the money you have moved from Australia can be transferred to a third country (e.g., moving to a country that’s not Australia or New Zealand).

Source: Summer KiwiSaver

Pros and Cons of Merging Retirement Balances

Pros:

Keeping all your retirement accounts in one place: Combining funds into one account simplifies the management of retirement savings, reducing administrative tasks and paperwork (as well as not having to constantly deal with two separate retirement savings funds).
Potential cost savings (from fees and other costs): Maintaining multiple accounts can incur multiple fees (especially the administrative costs that are charged annually as a result of having an account - which you’re effectively double paying for by having two retirement accounts). Consolidating into one account may reduce overall fees, potentially increasing the net returns on savings. Additionally, if you’re rolling Australian super into KiwiSaver, sometimes Australian super funds may charge insurance premiums that you might not need if you already have similar coverage in New Zealand, or don't need them as you're not living in Australia.
More streamlined investment strategy: Merging balances allows for a unified investment strategy that aligns with the individual's risk tolerance and retirement goals. For example, investing in one "growth" fund allows you to keep the same risk/reward exposure level rather than having to tweak and change the fund type for your KiwiSaver and Australian Super.
More simple drawdown/accessibility: Having all retirement savings in one country can simplify access to funds upon retirement, avoiding the complexities of dealing with two different pension systems. Equally, when the funds are domiciled in one country, you likely only have to deal with one regulatory/government body.
Tax-free transfer: Generally speaking, for most scenarios, neither New Zealand nor Australia will tax you on any lump sum transfer from Australian superannuation funds to a KiwiSaver scheme account (and vice versa). In a specific situation where you're an Australian tax resident moving back to New Zealand, the tax-free transfer implies that you're eligible for a transitional resident status and make the transfer within 48 months following you becoming a New Zealand tax resident (which qualifies most returning New Zealanders for an exemption from tax). Under the Trans-Tasman Portability Scheme, you are usually not liable for taxes, but if you're unsure or have a complex tax situation, speak to an accountant or tax advisor to discuss your tax situation.

Cons:

Exchange rate risk: Transferring funds between New Zealand and Australia involves currency conversion, which can be subject to exchange rate fluctuations. This can impact the amount received in the destination fund. In other words, when you transfer your KiwiSaver to Australia (or your Australian super to New Zealand), it might benefit or harm you, depending on the NZD/AUD currency pair's performance.
Regulatory differences: KiwiSaver and Australian Superannuation systems have different rules and regulations - make sure you know the details before making a decision. For example, the fees, tax liability, and drawdown timing all differ (which we detail in other parts of the guide).
Limited approved providers: Transfers must be made between approved KiwiSaver and Australian Super funds (e.g. not ALL KiwiSaver or Australian super providers will accept the trans-Tasman portability scheme).

Example Situations of Retirement Account Transfers

Example 1: Amy's Successful Transfer to Australia:

Amy, a New Zealander who moved to Australia for work, decided to consolidate her retirement savings into her AustralianSuper account.
She followed the steps outlined in the Trans Tasman Portability Scheme and completed the transfer within a few weeks.
Amy found that consolidating her accounts simplified her retirement planning and reduced the fees she was paying.

Case Study 2: Doug’s Considerations and Decision:

Doug, who had significant balances in both his KiwiSaver and Australian Super accounts, considered merging his funds.
However, after consulting with a financial advisor, he decided to keep his accounts separate due to the favourable investment performance of his KiwiSaver fund and concerns about exchange rate fluctuations (as well as potentially complicated taxes).

Understanding the Step-by-Step Guide to Transferring KiwiSaver to Australian Super (and Vice Versa)

Confirm Eligibility

To transfer your KiwiSaver savings to an Australian super fund (and vice versa), you must:

Ensure you have permanently moved from New Zealand to Australia.
Verify that both your KiwiSaver provider and Australian Super fund are approved for the transfer.
Have emigrated to Australia (or New Zealand), confirmed by a statutory declaration (you declare by law for this to be true) and proof of an Australian (or New Zealand) address.
Have an Australian tax file number (and an IRD number).
Apply through your KiwiSaver (or Australian super) provider.
Transfer your entire KiwiSaver (or Australian super) balance to an Australian (or KiwiSaver) super fund regulated by the Australian Prudential Regulation Authority (APRA) or a KiwiSaver fund that accepts transfers.

Important Information for Transfers

Due to the repeal of the work test, individuals aged 67 to 75 no longer need to satisfy it to transfer their KiwiSaver funds from 1 July 2022.
Partial transfers and transfers to self-managed super funds (SMSFs) for those transferring KiwiSaver to Australian super providers are not allowed.

Additionally, you cannot transfer if the transfer amount exceeds the Australian non-concessional contributions cap, which is currently $110,000 per year or $330,000 over three years using the bring-forward rule. Transfers below this cap will count towards your non-concessional contributions cap.

Furthermore, you cannot transfer your KiwiSaver funds if your total superannuation balance in Australia is $1.9 million or more (2023/2024).

Gather the Required Information

To initiate the transfer, you will need your KiwiSaver account details, including provider name and account number, and your Australian Super account details, including provider name and account number.

Specifically for your Australian super fund, they will require details about your KiwiSaver transfer, including:

Any Australian-sourced amounts (and any tax-free component).
Any restricted non-preserved component.
Any unrestricted non-preserved component.

This information affects the tax treatment of your super benefits. Your KiwiSaver provider must supply this information before the transfer can be accepted.

Contact Your KiwiSaver/Australian Superannuation Provider

Contact your respective KiwiSaver or Australian Super provider for the right advice and forms to fill out. They'll know the best way to consolidate your Australian Super into your KiwiSaver (or vice versa). They'll also provide you with the compliance letter required by your Australian or New Zealand provider.

Complete a Transfer Application

Once you’ve filled out all the relevant KiwiSaver or Australian super transfer forms (including a statutory declaration and relevant documentation), submit this information to your current provider.

You can usually send the form to your NZ or Australian counterparty (who will confirm the transfer, which you can then send to the other provider for confirmation). However, it's often more common to send the forms to the provider that you're moving away from (e.g., if you were moving your Australian super funds into a KiwiSaver account, you would contact and submit forms to your Australian super account as they have the legal right and control to transfer funds away to another institution).

Note: Both KiwiSaver and your Australian super fund may charge fees for transferring and accepting funds.

Monitor the Transfer

Keep track of the transfer process and communicate with your KiwiSaver and Australian Super providers to ensure the transfer is completed smoothly. The process varies in timeframe but usually takes four to six weeks to complete.

Australian Super Schemes that accept transfers from KiwiSaver accounts

Unfortunately, Australian super funds don't need to accept KiwiSaver transfers, and few do. The industry regulator APRA does not maintain a list of funds that do. You should contact your super fund directly to inquire. Known Australian super funds that accept KiwiSaver transfers include:

KiwiSaver Schemes that accept transfers from Australian Super providers

We list some of the most popular KiwiSaver funds that accept transfers from Australian providers, with links to their relevant transfer pages:

ASB
AMP
ANZ
BNZ
Booster
Fisher Funds
Mercer
Westpac
Milford
Generate
SuperLife

Frequently Asked Questions about Merging Kiwisaver and Australian Super Balances

How do I know if my Australian Superannuation can be moved or transferred?

Investments in complying superannuation funds regulated by the Australian Prudential Regulation Authority can be moved to a KiwiSaver provider under the Trans-Tasman retirement savings portability rules.
Generally, the following kinds of Australian-complying superannuation schemes can be moved to a New Zealand KiwiSaver scheme with no cap on the amount transferred:

Retail funds
MySuper
Industry funds
Corporate funds
Eligible rollover funds

Amounts from self-managed super funds (SMSF), defined benefit funds and unfunded public sector superannuation schemes may not be transferable.
You can look for your super account using the Australian Taxation Office website tool to find out whether your superannuation fund complies with Trans-Tasman retirement savings portability rules.

How do I know if I have Superannuation in Australia?

If you think you might have Superannuation in Australia from previous jobs you've worked (but have lost track of them), you can search if you have retirement savings by going to the Australian Tax Office (ATO) website and using the online tool.

Is there any tax liable on Australian super transfers?

Unlikely. Neither New Zealand nor Australia will tax you on lump sum transfers from your Australian Super fund to a KiwiSaver scheme. However, note that this tax-free transfer is on the basis that the transfer occurs within the taxpayer's transitional residency period of 48 months (4 years) following their becoming a New Zealand tax resident. Transitional tax residents will qualify for exemption from most taxes. We recommend you talk to an accountant or tax advisor if you have a complicated tax situation.

Also, there are differences between New Zealand and Australian tax rules that apply to retirement savings once the funds are in either country, such as the PIR and FIF taxes charged by The Inland Revenue and capital gains taxes (CGT) on super funds in Australia charged by the ATO. Consider these taxes before transferring your superannuation savings across the Tasman and the exchange rate from New Zealand to Australian dollars that may apply.

Can I transfer my Australian Super back to KiwiSaver if I return to New Zealand?

If you move back to New Zealand permanently, you can transfer your Australian Superannuation back to your KiwiSaver account under the Trans-Tasman Portability Scheme.

How long does the transfer process take?

The transfer process can take several weeks to a few months, depending on the providers involved and the completeness of the documentation provided.

Will I lose any benefits by transferring my KiwiSaver balance to an Australian Super fund?

Potentially, yes. Some benefits specific to KiwiSaver, such as the government contribution and first-home withdrawal option, may not be available in the Australian Super system. It’s important to weigh these factors before making a decision.

Can I split my KiwiSaver balance and transfer only a portion of it to my Australian Super fund?

Generally, transfers under the Trans-Tasman Portability Scheme involve transferring the entire balance. Partial transfers are typically not allowed.

Can I transfer my superannuation savings to another country if I've previously moved them between Australia and New Zealand?

No, you cannot transfer your superannuation savings to a third country (any country other than Australia or New Zealand) once they've been transferred between these two countries.

Is transferring my Australian Superannuation savings mandatory if I move to New Zealand, or vice versa?

No, transferring your Australian Superannuation savings is voluntary when you move to New Zealand and vice versa.

What should I do when applying for a superannuation transfer?

The Inland Revenue recommends consulting your specific KiwiSaver provider or an Authorised Financial Adviser to understand the particular procedures and timeframes involved in Trans-Tasman transfers.

Must I transfer my Australian Superannuation savings into KiwiSaver, or can they go to a different account in New Zealand?

Australian superannuation savings can only be transferred into a New Zealand KiwiSaver scheme, not other retirement schemes, managed funds, or bank accounts.

Are there any fees for transferring my Australian superannuation savings to New Zealand?

Most NZ KiwiSaver Scheme funds do not charge a fee for accepting a transfer, but some may do (and the equivalent Australian providers also might charge a fee).

What documents are needed to transfer my superannuation savings from Australia?

Required documents vary by provider but typically include certified (e.g. by a Justice of the Peace) copies of identification such as a Passport or Driver's Licence and possibly a Statutory Declaration regarding your permanent residency in either Australia or New Zealand (depending on whether you're transferring to Australia or vice versa).

Can I withdraw transferred New Zealand or Australian superannuation savings for significant financial hardship or serious illness?

Yes, if you meet the criteria. Australian savings transferred to Ne vw Zealand follow KiwiSaver rules for early access due to financial hardship or serious illness, and vice versa for New Zealand savings transferred to Australia.

What if I have multiple Australian Superannuation providers?

Unlike New Zealand (where you can only have one KiwiSaver account and, therefore, only be with one KiwiSaver provider or fund), Australia allows multiple superannuation accounts. This means that if you have multiple Australian superannuation providers, you will need to complete and sign a separate transfer form for each provider.

I've lost track of my Australian Superannuation. What do I do?

If you've lost track of your Australian super savings, you can recover the details by:

Calling ++61 2 6216 1111 and following the prompts.
Download and complete the Searching for lost super form from the ATO website.
You will need to provide proof of identity to the Australian Tax Office, which can then provide the name and contact details of any superannuation fund, retirement savings account, or eligible rollover fund associated with you.

What should I do if I have an 'ATO-held Super'?

The ATO will not transfer directly to a KiwiSaver provider. First, transfer your ATO-held Super to an Australian Super fund, then apply to transfer it to your KiwiSaver account.

Should I consider KiwiSaver, Australian Super, or both?

It depends. The decision to contribute to KiwiSaver or Australian Super depends on whether you plan to live in Australia again (and the various fees, investment accounts, and tax considerations for contributing to each scheme). If you've got a complex situation, we recommend talking to an accountant or tax advisor.

How Do I Know If My Australian Superannuation Can Be Moved to KiwiSaver?

You can transfer your Australian Superannuation to your KiwiSaver account, provided it is with an Australian Prudential Regulation Authority (APRA) certified provider. Check the super fund look-up website to confirm your fund is APRA certification.

Some funds cannot be transferred to KiwiSaver, including self-managed super funds (SMSF), pension phase, transition to retirement, and defined-benefit funds. To transfer an SMSF, it must first be moved to an accumulation account like MySuper or a general retail, industry, or eligible rollover fund.

Related guides:

Specific advice from KiwiSaver providers on this issue:

Official advice from tax departments:

Specific advice from Australian superannuation providers on this issue:

Other helpful links:

Arrangement between the Government of New Zealand and the Government of Australia on Trans-Tasman Retirement Savings Portability.

NZ-Australia retirement savings portability agreement

Questions and answers on the NZ-Australia retirement savings portability agreement. July 2009.