The Australia Government First Home Super Saver Scheme (FHSSS) – lets you withdraw some of your KiwiSaver to help buy your first Australian home.
Yes, you read right… There is quite a history with this, but once again New Zealanders moving to Australia can transfer their KiwiSaver to Australia and use some of it as a deposit for their first home. You must meet the criteria the ATO set and ensure you set up the right account with the right super fund provider.
If you move to Australia, and transfer your KiwiSaver to either First Super or TelstraSuper, you can then withdraw $15,000 (max $50,000, but generaly $15,000) to help with the purchase of your first home in Australia. Properties in New Zealand are not taken into consideration.
Please note, not all super providers allow you to do this, so please register with either TelstraSuper or First Super and make sure you sign up for the correct super package.
You must follow the below process to use your KiwiSaver to help you into the Australian property market:
- Move to Australia and obtain a Tax File NUmber (TFN)
- Select a super fund provider that has an FHSS scheme, setup an FHSSS account and transfer your KiwiSaver
- Apply to the ATO for an FHSSS determination and a release
- Go house hunting and find your dreamhome
- You have 12 months to find a home, but if you don’t find a home in this time, go back to the ATO and they will advise you where to from here or grant you an extension.
In most cases, once you sign a contract to purchase any property, you can no longer request a FHSSS determination, therefore you can not use your KiwiSaver in Australia to buy property.
You have 12 months (or other period allowed) from the date you requested a release. However, the ATO will automatically grant you an extension of another 12 months. You can also change your mind, and recontribute an amount into your super fund. Or you can keep it and pay 20% tax.
All the above is gone into greater detail below.
The ATO says, ‘If you transfer an amount into an Australian super fund from a KiwiSaver scheme, the amount will be an eligible contribution (except for certain amounts)’. You are not required to be an Australian citizen, Australian resident or an Australian resident for taxation purposes for the FHSS.
Find out below what the ‘certain amounts’ are, what super fund provider you need to register with, what you need to know about the First Home Super Saver Scheme (FHSSS), the KiwiSaver to super fund transfer process and how to withdraw $15,000 to use as your first home deposit in Australia.
If you are moving to another country apart from Australia and want to withdraw your KiwiSaver savings because you have emigrated permanently, you are able to do so. At least 12 months need to have passed since your permanent emigration from New Zealand.
You’re able to withdraw all your KiwiSaver savings, excluding any NZ Government contributions you’ve received and any funds you had transferred from an Australian-complying superannuation fund.
If your withdrawal request is approved, your Government contributions will be repaid to the Government before your KiwiSaver account is closed.
If you’re moving to Australia, unfortunately, you are unable to request an early withdrawal of your KiwiSaver savings. You can transfer your KiwiSaver savings to an Australian-complying superannuation scheme that is willing to accept the transfer and is regulated by the Australian Prudential Regulation Authority (APRA). Or you can leave your KiwiSaver savings invested in your KiwiSaver Scheme account.
Read my Buying a house in Australia post to learn everything you need to know about buying your new home in Australia and some smart tips to avoid paying more than you need to in fees and charges.
In this post you will find information on:
Yes, you can transfer your KiwiSaver to an Australian superannuation fund, and it can be used in retirement as if you earned it in Australia. You can also use it to purchase your first Australian home. Read on…
Yes, you can use a certain amount of your KiwiSaver to buy your first home in Australia, as long as you follow the below process and transfer it into the correct super fund.
If you are living and working in Australia but still have a KiwiSaver account in NZ, you may want to transfer your money to an Australian super fund that accepts KiwiSaver amounts to save on fees and taxes.
If you’re about to become a non-resident of New Zealand for tax purposes (‘officially’ moved to Australia!) or are already living in Australia, you will be taxed at a rate of 28% on the investment earnings in your KiwiSaver each year.
First, you have to set up an account with your chosen super provider:
To transfer your KiwiSaver to your super fund, you must:
You will get confirmation of your transfer once the funds have been received from your New Zealand fund (which can take up to 4 weeks).
You can only request a release under the FHSSS once. It may take between 15 and 20 business days for you to receive your money. You should consider this timing when you start your home-buying activities. You can make your release request within 14 days of signing a property contract.
When you are ready to receive your FHSSS amounts, you need to apply to the ATO for an FHSSS determination and a release.
You must have an FHSSS determination before you sign a contract to purchase any property that results in you obtaining an interest in that property. This includes contracts to purchase vacant land. In most cases, once you sign a contract to purchase any property, you are no longer eligible to request a FHSSS determination. For more information, refer to GN 2018/1.
To withdraw your voluntary super contributions under the FHSSS, you need to request an FHSSS determination from the ATO:
When you apply for an FHSS determination, the ATO will tell you your maximum FHSSS release amount.
After you have made a valid release request, the ATO will issue a release authority to your super fund(s) requesting they send your FHSS release amounts to the ATO. Before they send the balance of the released amount to you, the ATO will:
In most cases, it will take between 15 and 25 business days for your fund (First Super) to release your money and for the ATO to pay it to you.
A payment summary will be sent to you at the end of the financial year. It will show your assessable FHSS released amount, which is comprised of:
You need to include this amount in your tax return for the financial year you request the release. The tax payable on this assessable amount will receive a 30% tax offset.
Once your savings have been released, you have up to 12 months (or other period allowed) from the date you requested the release of FHSSS amounts to sign a contract to purchase or construct a home.
The contract you enter into must be for residential premises in Australia. It cannot be any of the following types of property:
Note: If you purchase vacant land to build a home on, the contract to construct your home must be entered into to meet the FHSSS requirements. The contract to construct that home must be entered into within 12 months (or other period allowed) from the date you requested a release. In this situation, you must not have purchased the vacant land before applying for an FHSSS determination.
You must genuinely intend to occupy the property as a home and demonstrate this by:
If you do not sign a contract to purchase or construct a home within 12 months from the date you requested a release:
If you sign a contract to purchase or construct your home you must notify the ATO within 28 days of signing the contract. If you recontribute the assessable FHSSS amount (less tax withheld) into your super fund, you must notify the ATO within 12 months of the date you request the release of your FHSSS money.
If you don’t notify the ATO that you have done one of the above or you choose to keep the FHSSS amount, you may be subject to the FHSSS tax:
There are certain amounts you cannot use towards the FHSSS. You cannot use amounts transferred from a KiwiSaver scheme that are Australian-sourced amounts or return New Zealand-sourced amounts.
So, you should be fine if you haven’t been transferring your KiwiSaver/Super between NZ and Australia!
The First Home Super Saver Scheme (FHSSS) allows people to save money for their first home inside their super fund.
From 1 July 2017, Australians were able to make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into their super fund to save for their first home.
From 1 July 2018, they could apply to release their voluntary contributions and associated earnings to help purchase their first home. They would have to meet the eligibility requirements to apply for the release of these amounts.
You can use this scheme if you are living and working in Australia, are a first home buyer, and both of the following apply:
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSSS, up to a total of $50,000 contributions across all years. You will also receive a number of earnings that relate to those contributions.
There are a number of important things you need to know if you plan to use the FHSSS:
Read more about FHSSS on the Australian Government ATO’s website, on First Super’s website, or on TelstraSuper’s website.
In Australia, only voluntary contributions (before or after tax) made by you to your super fund, or transferred KiwiSaver funds, can be used as part of the FHSSS.
The maximum voluntary contribution you can put towards the FHSSS is $15,000 in any one financial year. The total amount you are allowed to contribute is $50,000 per person.
If you are buying a house with a partner, together you can withdraw up to $100,000 before tax in voluntary contributions.
You cannot use contributions made, whether earnt in NZ or Australia:
The ATO makes it clear that if you include these amounts in your FHSSS application, your request will be cancelled, and you will not be eligible to apply for the FHSSS in the future.
The ATO determines what and how much of the KiwiSaver funds are eligible for release. The ATO legal database, section GN 2018/1 provides guidance on what they consider eligible contributions for release under the FHSS. In particular, the below contributions are not eligible:
The key word above to be aware of is ‘mandated’, and the ATO’s interpretation of this. KiwiSaver funds are not mandated in NZ, and NZ does not have industrial or award employment contracts, only collective or individual employment agreements. Hence, the ATO has the last call on what they determine as ‘mandated funds’.
Here is a quick overview of the contribution differences between both countries:
New Zealand KiwiSaver |
Australian Superannuation |
| Employee Contributions via employer | Concessional/pre-tax contributions |
| These are directed straight from a person’s before-tax pay to the IRD. They can choose from either 3%, 4%, 6%, 8% or 10%. If you do not decide, your employer will default to 3% | Government-mandated contributions. Currently, in FY23, 10.5% of a person’s pre-tax income. |
| Employer Contributions via employer | Non-concessional / post-tax contributions |
| Depending on your employment contract, your employer may meet your elected contribution percentage; otherwise, they need to contribute at least 3% to your KiwiSaver (unless the employer is already contributing to another type of in-house/retirement scheme). | Voluntary contributions are contributions a person can choose to make to their super fund. The amount of contributions is limited. |
| Voluntary Contributions | Government co-contribution & LISTO |
| Voluntary amounts a person makes directly to their KiwiSaver provider. | If you are on a lower income, the government offers incentives to contribute into your super and towards retirement in the form of a co-contribution and low-income super tax offset. |
| Government Contributions | |
| If a person voluntarily contributes to KiwiSaver, the government will contribute up to a maximum of $521.43. To get this, a person will need to contribute up to $1042.86 voluntarily each year. The government will still contribute 50 cents for every dollar made if this full amount isn’t contributed. |
You must be 18 years old or older for the FHSSS, along with all the below criteria:
According to the ATO, you do not need to be an Australian citizen or resident for taxation purposes. If you hold a permanent resident visa or an SCV, you can use the FHSSS as long as you meet the eligibility requirements.
Advantages of the FHSSS are:
The downside of the FHSSS is:
If you are a New Zealander moving to Australia and want to use your KiwiSaver savings towards a home deposit, then the below two super providers can help you.
First Super and TelstraSuper are two of only a few Australian super funds that accept KiwiSaver Transfers.
It’s really important that you spend some time researching which super provider best suits your requirements, including reading independent reviews.
First Super has 3.8 stars from 22 Google reviews (28 May 2024), whereas First Super has no reviews on Product Review.
TelstraSuper has no Google reviews but has 4.4 stars from 133 reviews on Product Review (28 May 2024).
You can read more about them both below…
First Super is an industry super fund. That means they are run only to benefit their members.
Everyone at First Super wants you to enjoy your retirement, but they also want you to enjoy today. To them, being a super fund is more than just what happens when you stop working:
Of course, everyone has different needs. Your individual circumstances will determine how you will benefit most from First Super.
First Super’s post on KiwiSaver and First Home Super Saver (FHSS) is here.
It’s simple, really. They’re a leading profit-to-member super fund. Everything they do is for their members – full stop. Every day, they aim to build a financially secure future for you so we can help you have a more comfortable retirement. Here are 6 ways they do this:
Here are two of TelstraSuper’s posts worth reading, transferring your KiwiSaver across the Tasman and First Home Super Saver scheme.
For more information about the FHSSS refer to GN 2018/1 or First Home Super Saver – the essentials factsheet or read First Super’s information factsheet on FHSSS.
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.
If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
Hi… I’m JJ Smith.
I’m the creator and editor of Moving to Australia and have been for 17+ years! I know everything there is to know about New Zealanders moving their families and life to Australia. Either from first hand experiences and research or through the questions from visitors to this website… and I’m here to help!
I love helping people via Moving to Australia.
Providing the answers to questions we all ask when deciding whether to make the move from New Zealand to Australia. Even giving individual specific advice where needed.
I have learned a lot over the last 17+ years from personal experience and through interacting with visitors. This is my job, making sure the information here is comprehensive and up to date.
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Ben
December 25, 2024 at 6:57 pmI just want to clarify with people that if shift kiwisaver over to an Australian super fund, you can use 15k of it for your FHSS not 50k.
How it works is you can voluntarily pay upto 15k per year (maxed out at 50k) extra into your Super and later use it for a first home in Australia.
If you have 50k or 500k in kiwisaver and transfer it to your Aussie super you will only be able to use 15k
DO NOT TRANSFER YOUR SUPER THINKING YOU CAN USE 50K FOR YOUR FIRST HOME DEPOSIT
Sam
June 26, 2024 at 6:12 pmHello, I’m currently reading that since 2015 u can not use KiwiSaver to buy a house out of New Zealand? Is that true or?
Thank you
JJ Smith
July 4, 2024 at 4:09 pmHi Sam,
Thanks for your comment. Sorry for the delay in replying.
Your are correct, since 2015 you cannot use your KiwiSaver to buy property outside of New Zealand. To be eligible for these schemes, you need to fit the following criteria:
– Have been a KiwiSaver member for at least three years, contributing the required minimum amount (3%).
– It needs to be your first time owning a property or a piece of land.
– You must intend on living in the home (i.e. it’s not an investment property)
– The property must be in New Zealand
– It must be your first time withdrawing from the KiwiSaver scheme to purchase a property.
Read this blog for everything you need to know about Kiwisaver: https://www.squirrel.co.nz/blogs/housing-market/kiwisaver-for-first-home-buyers/.
This why you need to have moved to Australia and transferred your Kiwisaver to an Australian super with an First Home Super Saver Scheme (FHSSS) package, before you can use your Kiwisaver savings in Australia.
That post, KiwiSaver for your Home Deposit, has all the information you need: https://www.movingtoaustralia.co.nz/kiwisaver-for-your-home-deposit/.
Hope the above helps.
Alex
May 8, 2024 at 1:56 amHi JJ,
Thank you for such a wonderful web resource you put together, it is utterly helpful!
I was reading about the KiwiSaver transfer and found one of the links you have for the FistSuper fact-sheet is not working.
Thus, I am pasting the correct URL below if you want to update it:
https://www.firstsuper.com.au/doc/first-home-super-saver-scheme-fhss/
Thanks again!
Kind regards,
Alex.
JJ Smith
May 8, 2024 at 11:14 amHi Alex,
Thank you so much for taking the time to inform me of the link error and sending me the correct link.
I ended up finding two links that had been changed since my post’s creation and have updated them both, thanks to you.
This is the key fact sheet for the FHSSS from the Australian Government FYI: https://treasury.gov.au/sites/default/files/2019-03/Post-passage_fact_sheet_-_First_home.pdf.
Please feel free to email me back any further questions you have.
Thanks,
JJ Smith
Sergio
August 18, 2023 at 11:36 amHi, thanks for that, this was super useful.
I have a question, I am allowed to use up to $15k per contribution year of my voluntary payment (up to $50k). If I transfer my current Kiwisaver balance that is 70K, would I need to wait for 3-4 years before using the 50k or could I transfer my KS balance and on the first year can I request the 50K?
JJ Smith
August 18, 2023 at 2:13 pmHi Sergio,
Thank you for your comment.
Please note, I am not a financial adviser and all the information I have been able to find is included in the post. Eligibility is assessed on an individual basis.
I haven’t heard from anyone who has managed to withdraw $50k, only $15k.
There is no requirement for you to be an Australian citizen, Australian resident or an Australian resident for taxation purposes for the FHSS and therefore no time frame you need to be residing in Australia (from what I can find out).
You can apply as soon as your balance has been transferred and request the full $50k but please seek independent financial advice from your bank, broker and the ATO before submitting your application.
For more info visit the ATO website: https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/#Eligibilityandconditions.
Thanks
George
June 26, 2023 at 1:44 pmHi JJ,
Was wondering if there was a reason/page on why you recommended First Super instead of e.g. say Telstra-Super for transferring Kiwisaver to Aus Super for First Home Super Saver (FHSS)? https://www.telstrasuper.com.au/products-and-services/joining-telstrasuper/kiwisaver … Just wondering if you had heard of anything of any super fund being more customer friendly or less hassle free than the other etc.?
Thanks!
JJ Smith
June 26, 2023 at 2:37 pmHi George,
Thank you for your comment.
I have actually just added TelstraSuper to my KiwiSaver post. I was only made aware of them recently and the fact that accept KiwiSaver payments.
Personally, I have found TelstraSuper really helpful in answering some of the questions I’ve been asked by visitors.
Do some research into both providers online, especially independent reviews and you should find your answer to who is better to deal with.
Thanks
Seza
June 25, 2023 at 11:08 pmI understand the Aust. Government is letting people get the first home grant again after 10 years. So does this mean I am eligible to use my kiwisaver in Aust on a home purchase, as I had first bought 13 years ago. I never used kiwisaver back then.
JJ Smith
June 26, 2023 at 10:24 amHi Seza,
Thank you for your comment.
If you have previously owned a home in Australia, you can not get the FHOG or use your KiwiSaver. Both of these Australian Government schemes are for first-home buyers only.
Sorry, the news isn’t better.
Bec
June 23, 2023 at 9:57 pmWe moved from NZ to Australia just over 2 years ago. At the time we looked into whether we could use our KiwiSaver towards a deposit and everything said no. We also were told the only super fund to accept the transfer was Energy Super (now Brighter Super) so we made the transfer to them. Does this mean that we aren’t eligible to use this scheme with First Super or would we be able to transfer from Brighter Super to First Super and go through the process?
Thanks
JJ Smith
June 26, 2023 at 10:39 amHi Bec,
Thanks for your comment.
Have you owned a home in Australia? If you haven’t, then you should be eligible for the FHSS.
Regarding changing super providers, here is a post on consolidating super funds and changing super funds. It gives some good advice on things you need to consider before changing super providers: https://moneysmart.gov.au/how-super-works/consolidating-super-funds.
Hope the above helps.
Charles
June 8, 2023 at 8:33 pmHi JJ
I was hoping you might have a little more knowledge on my current situation . I have recently transferred my KiwiSaver to my superfund (First Super) and then applied for a determination for release amount and First super confirmed they had sent the report to ATO for this. However ATO have responded asking for more information or more so proof of the voluntary contributions I reported. I was under the impression that I could put down the entire amount that had been transferred from my KiwiSaver is that correct? The call centre person I spoke to said I would need to get proof from my KiwiSaver provider that this had been rolled over to my Super and also a statement showing how much exactly of the KiwiSaver amount were voluntary contributions. Friends who recently went through this don’t recall having to do this. I’m left feeling a little unsure of what to do next.
Thanks
JJ Smith
June 19, 2023 at 12:07 pmHi Charles,
My KiwiSaver and First Home Super Saver (FHSS) post clearly outlines that it is only your voluntary contributions that can be used towards the FHSS:
Types of contributions that cannot be used towards FHSS
You cannot use contributions made, whether earnt in NZ or Australia:
– by your employer
– your spouse or anyone else on your behalf
The ATO makes it clear that if you include these amounts in your FHSS application, your request will be cancelled, and you will not be eligible to apply for the FHSS in the future.
You are going to have to get the information from your NZ KiwiSaver provider (or the IRD) that the ATO is requesting and hope that they will allow you to amend your application because you were unaware of the condition.
Good luck.
Charles
July 17, 2023 at 1:59 pmThank you for your response.
I have since been approved and the funds released to me. I will have to ring them to clarify which contributions were eligible because according to the info I received from my KiwiSaver scheme I had only contributed $10k however they have allowed me to use $15k of the $24k that was rolled over. They also never got back to me regarding putting the full $24k in my application so it is now even more unclear to me which contributions they included in deciding that I receive $15k. Potentially the interest was also included or the govt contribution? I’m not too sure. Either way, I am grateful and also grateful for your response.
Thank you
Paul
May 26, 2023 at 1:10 pmHi. Can you withdraw transferred Kiwisaver funds if you have already owned, or currently own, a home in NZ? The Kiwisaver rules in NZ don’t allow for this, so can you bypass these rules by buying a property in Australia? Thanks!
JJ Smith
May 26, 2023 at 3:04 pmHi Paul,
If you move to Australia, and transfer your KiwiSaver to First Super, you can then withdraw $15,000 (up to $50,00) to help with the purchase of your first home in Australia.
Properties in New Zealand are not taken into consideration.
Please note, not all super providers allow you to do this, so please register with First Super and make sure you sign up for the correct package.
Good luck with your move.
Brian
December 22, 2022 at 10:31 pmIf I have NZD 55,000. How much can I withdraw for the home deposit??
Regards
JJ Smith
December 23, 2022 at 12:24 pmHi Brian,
Thanks for your email.
Minimum $15,000, up to a total of $50,000. However, I am unable to tell you what “you” will be able to withdraw.
All the information I have been able to find on the subject is in the post.
After you have transferred your money to Australia and applied for the FHSS, the ATO will advise you how much you can withdraw to help buy your first home.
Please feel free to email me back any further questions you have.
Good luck with your move.