Moving to Australia from New Zealand?
Get all information you need to make a successful and stress-free move across the ditch.
It is a mandatory contribution that is made by employers on behalf of their employees, and it is designed to help individuals save for their retirement.
The funds in the Australia Super account are invested in a range of different assets, including stocks, bonds, and property, and the account holder can choose how their money is invested.
You can transfer your KiwiSaver into your Australian super fund and withdraw some of it to help you purchase your first home (read more below).
You should provide your tax file number (TFN) to your employer and super fund. If you don’t, your super fund may take extra tax out of your super contributions and will not be able to accept your personal contributions.
Please make sure your research your super fund provider and the specific fund you are going to invest in, as I have had a number of visitors transfer their KiwiSver into a fund they are not happy with.
In this post you will find information on:
Super, or superannuation, is a type of retirement savings account designed to help people save for their retirement. It is a long-term investment that grows over time and is generally funded by contributions from both the employee and the employer.
The money in a super account is invested by a professional fund manager and is intended to provide a source of income for the individual in retirement.
It’s important that you learn what you are entitled to, what your employer needs to pay, and the limits that apply because it can help you maximize your retirement savings.
Adding a little extra, choosing a fund whose investment strategies align with your circumstances and checking how much you are paying in fees and charges will help your super grow over your whole working life in Australia. The YourSuper comparison tool will help you compare MySuper products and choose a super fund that meets your needs.
The YourSuper comparison tool helps you choose a super fund by displaying MySuper products ranked by fees and net returns. The Australian Securities and Investments Commission (ASIC’s) Moneysmart website also provides information on what to look for when comparing and choosing a fund at Moneysmart – choosing a super fund.
If you have priously lived in Australia and made super contribution, you can find your super account/s through myGov.
You can log in to ATO online services through myGov to find your super. You can see the super accounts held for you and whether we are holding any super for you. You can also consolidate these into your preferred super account.
If you are a New Zealand permanent resident or citizen who worked in Australia and you were eligible for super, an amount may have been paid on your behalf into an Australian super fund account.
In some circumstances, Australian super funds are required to transfer certain accounts to the ATO as unclaimed super money (USM). This may occur when:
Money transferred to the ATOs in these circumstances is known as ATO-held USM.
The Trans-Tasman retirement savings portability arrangement helps you take your retirement savings with you when you move between Australia and New Zealand.
Changes to the law in December 2020 mean that if you permanently emigrated to New Zealand or are a New Zealand citizen and you have ATO-held USM, you may be eligible to:
You need to apply to the ATO directly, and they will transfer any ATO-held USM that belongs to you to your nominated KiwiSaver scheme. These transfers will occur bi-annually in February and August.
To read more about how to search for lost super, get the application, and lodge your application, visit the ATO’s website, ATO-held USM for New Zealand permanent residents and citizens post.
Making extra contributions is a great way to boost your retirement savings. It could also help you reduce your taxes. You may have different options depending on your age, how much you want to put in and your super balance. For more information, see Growing Your Super.
Some of the main ways you can personally make extra contributions include:
Before you make decisions about your super, you need to understand what’s best for you. This will depend on your income and personal circumstances.
It’s important to consider any consequences of making super contributions, as too much super can mean extra tax.
In some circumstances, the government can also make additional contributions to your super as a:
You don’t need to apply for these government super contributions. They will work out if you are eligible. If your fund has your TFN, they will pay it straight into your super fund account.
If you move permanently to Australia, you can transfer your KiwiSaver savings to an Australian superannuation scheme. However, you do not have to transfer your KiwiSaver savings to Australia.
If you do not transfer your KiwiSaver to Australia, your funds will remain in New Zealand. Your investment earnings will be taxed at a rate of 28% each year. Plus, you’ll be paying annual admin fees. Unfortunately, you cannot request an early withdrawal of your KiwiSaver savings when you move to Australia.
If you want to transfer your KiwiSaver savings to an Australian-complying superannuation scheme that is willing to accept the transfer. Not all Australian super funds accept KiwiSaver transfers because it is not mandatory and the majority do not offer this service.
For more information about transferring your KiwiSaver to Australia, read my KiwiSaver for your Home Deposit post.
You can generally only withdraw your super when you reach retirement. It is illegal to access super early without meeting a condition of release. Fees and penalties will apply for doing so.
You may be able to access your super early in the following types of circumstances and if you meet certain requirements, where you:
Make sure that you confirm with your super provider that the above is accessible to you before when you are signing up, as you may need to be in a particluar type of super.
The First Home Super Saver (FHSS) scheme allows people to save money for their first home inside their super fund, then withdraw it to use towards their home deposit of their first home.
From 1 July 2017, you can make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home.
From 1 July 2018, you can apply to release your voluntary contributions and associated earnings to help you purchase your first home. You must meet the eligibility requirements to apply for the release of these amounts.
You can use this scheme if you are a first-home buyer and both of the following apply:
You can apply for a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to $50,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.
However, you will need to be with a super provider and have a specific plan to be able to withdraw your funds to help purchase your first Australian home. Not all super providers have an FHSS scheme, so make sure before you transfer your funds.
Read more about the FHSS in my KiwiSaver for your Home Deposit post.
Reaching retirement age is a significant milestone, and accessing your super will provide you with a source of income in your retirement years. Depending on your circumstances, you may be able to access your super as a lump sum or as regular payments over time.
There are rules around withdrawing and using your super. Severe penalties and fees apply for accessing it illegally. It’s important you are confident you meet the requirements before you access your super.
At this point you should also consider how tax will apply to your super benefits. This will depend on a number of different factors, such as your age and whether your super comes from a taxed or untaxed source.
The below posts might interest you:
If you’ve read the above content and the answer to your question isn’t there, please write a comment below, and I’ll research the answer for you.
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Lesley Wardle
September 18, 2024 at 11:05 amGood morning my New Zealand sister-in-law has been living in Australia since 1977 and has been (and still is) working for most of that time, She married an Australian younger than herself and although she is 73 she cannot retire while he is still working. It seems most unfair that she cannot qualify for either the New Zealand or Australian pension/super.
JJ Smith
September 20, 2024 at 12:57 pmHi Lesley,
Thank you for your comment.
It does seem unfair, as in New Zealand your sister would get the NZ pension, but because the Australian pension is income and asset tested and is based on if you are part of a couple or single, it does mean that some people do not receive the Australian pension if their income and assets are above the thresholds.
If you want to find out more about how the pension works in Australia, have a read of my Australian Age Pension post: https://www.movingtoaustralia.co.nz/australian-age-pension/.
The Australian Government is assisting older Australians to work, if they are able and wish to do so, by offering the Work Bonus.
Seniors may have substantial income from work and still receive an Australian Age Pension. Age Pension rules provide incentives for work, including part-time or casual work, through the combined application of the pension income test and the Work Bonus.
The Work Bonus provides an incentive for pensioners over Age Pension age to work, should they choose to do so, by allowing them to keep more of their pension when they have income from working. Under the Work Bonus, the first $300 of fortnightly income from work is not assessed as income under the pension income test. Any unused amount of the fortnightly $300 Work Bonus will accumulate in a Work Bonus income bank, up to a maximum amount of $7,800.
The amount accumulated in the income bank can be used to offset future income from work that would otherwise be assessable under the pension income test. The income bank amount is not time-limited; if unused, it carries forward, even across years.
For more information, visit Work Bonus on the Australia Government Department of Social Services website.
I hope the above helps.
John Hall
January 29, 2024 at 5:05 pmMy daughter has lived in Australia for I think about 18 years.She has been employed the whole time apart from time she had off when her 2 children were born.She has recently become unemployed and Centrelink have told her that she is ineligible for payment of any sort from them.She has tried to access some of her Super but was told by them that they don’t pay it out unless she is on some form of Centrelink payment.Sorry,I forgot to mention that she is now a solo parent with more than primary care of her two kids. I hope you can suggest something because things are becoming dire for her.Thanks
JJ Smith
February 8, 2024 at 12:02 pmHi John,
Sorry to hear about your daughters situation.
Unfortunately this is the reality for New Zealaners living in Australia on an SCV. Hence why the NZ government has being pushing for our rights over there for so long and finally got the direct pathway to citizenship sorted: https://www.movingtoaustralia.co.nz/citizenship-pathway-for-new-zealanders-in-australia/.
You can access your super early in very limited circumstances, including to pay certain expenses on compassionate grounds, as well as terminal illness, incapacity and severe financial hardship. As she has been made aware, she is not eligible for this because she has not received any government support (income support payments for a continuous period of 26 weeks).
When you can access your super early: https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/when-you-can-access-your-super-early.
She is going to have to find a new job, as the Australia government will not help her.
She should apply for citizenship asap, if she meets the eligibility requirements. She must not have been absent from Australia for more than 12 months in total in the past 4 years, including no more than 90 days in total in the 12 months immediately before applying.
She can read more on the above link, or apply here: https://immi.homeaffairs.gov.au/citizenship/become-a-citizen/permanent-resident#Overview.
However, if she doesn’t manage to get another job soon to support her and her 2 children, then I’m sure what she will do, because the processing times for Australian citizenship by conferral are between 4-15 months: https://immi.homeaffairs.gov.au/citizenship/citizenship-processing-times/citizenship-processing-times.
I wish I had better news for you. I’m so sorry that I can’t help.
Benjamin Thackery
December 13, 2023 at 9:35 amIs it possible to open an Australian super account while still living in NZ, but working for an Australian company?
I can already open a bank account, and am relatively confident I can get an Australian TFN, so would the process of opening a Super account still be straight-forward?
Thank you,
JJ Smith
December 14, 2023 at 5:16 pmHi Benjamin,
It looks like you can. Here is what I’ve been able to find…
There are different ways you can open a super account – whether this is through your new employer or online directly with the super fund.
If you don’t tell a new employer what your chosen super fund is, they’re obliged to check to see if you have a stapled super fund before opting to open a super account with their preferred default super fund on your behalf.
You may like to consider some of the potential benefits of choosing your own super fund when you start a new job.
Most super funds have an easy online joining process. If you’ve decided to open an account with a new fund, it’s often as easy as searching for the online join tool on their website and following the tool’s prompts.
If you can, have your tax file number (TFN) handy. If you don’t have a TFN yet, the ATO has advice on applying for a TFN you may find helpful. Letting your super fund know your TFN means they can accept your super contributions and charge the appropriate tax rates that generally apply to super contributions.
Source: https://www.canstar.com.au/superannuation/open-super-account/.
If you are opening a super account from NZ you will be a non resident. Provided an individual meets the relevant SIS contribution rules, a fund trustee may accept contributions from a non-resident or a temporary resident.
Source: https://www.mlc.com.au/content/dam/mlcsecure/adviser/technical/pdf/super_for_non_residents.pdf.
I recommend comparing super providers and choosing one that suits you. You can use the YourSuper comparison tool on the ATO website (https://www.ato.gov.au/calculators-and-tools/super-yoursuper-comparison-tool) or one of these on-government super comparison websites include:
– Canstar – https://www.canstar.com.au/superannuation/
– Chant West – https://www.chantwest.com.au/ratings/for-super-funds/
– Morningstar – http://www.morningstar.com.au/Tools/NewFundScreener
– RateCity – http://www.ratecity.com.au/superannuation
– SelectingSuper – http://www.selectingsuper.com.au/
– SuperRatings – http://www.superratings.com.au/
All of these have some information for free. Some of them also offer more detailed information for a fee.
The MoneySmart government website also has some good advice about choosing your super: https://moneysmart.gov.au/how-super-works/choosing-a-super-fund.
Hope the above helps.