What should I think about in making up my mind, whether I should transfer my Aussie Super to New Zealand?

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1 Australian super Choose SuperLife for your KiwiSaver scheme If you have a balance in an Australian superannuation scheme 1, you may transfer it to your KiwiSaver Account under SuperLife. I have a super account in Australia, should I transfer it to my KiwiSaver Account? For many people, transferring their Australian balance to SuperLife 2 will make sense. But for some, there will be advantages in keeping it in Australia. This is a decision you will need to make based on your personal situation and what is important to you. September 2015 This paper is of a general nature. It looks at some of the things you should think about when deciding whether or not to transfer your Australian superannuation to KiwiSaver. If you require personalised financial advice, you should talk to an appropriately experienced authorised financial adviser. Generally, having your savings in the country you will retire to makes sense. If you will probably return to Australia, keeping it in Australia is more likely to be the better option. If you are not likely to return to Australia, it makes sense, at some point, to bring the money to New Zealand, because this is where you will spend it. The question for most is when not if. This may be now, or it may be at anytime up to, or during your retirement. What should I think about in making up my mind, whether I should transfer my Aussie Super to New Zealand? Convenience Investment strategy For many people, the decision will be made for non-financial reasons. It is just more convenient to have control of all of your investments in one country. This will be particularly true if your Australian balance is small. As a general rule, the investment strategy that is optimal for an Australian based investor, is different to that which is best for a NZ based investor. You have to decide whether your current investment strategy under your Australian scheme, is best for you based on your personal circumstances. If the current Australian scheme does not have the optimal strategy for you, transferring to SuperLife may make sense, because of SuperLife s flexibility. Fees Tax The only investment return that is important, is the net-of-tax and net-offees return. SuperLife probably has lower total fees than your current Australian scheme and may, therefore, give you a higher net return, all else being equal. Small fee savings can make a big difference to the accumulated savings at retirement. The tax laws between NZ and Australia are different. Tax laws will also change. In Australia, you generally pay tax at 15% on income and any capital gains. In general, in New Zealand adults pay tax at 17.5% or 28% on income (some pay 10.5%) and 0% on capital gains. While the NZ rate 1 2 The scheme must be regulated by the Australian Prudential Regulation Authority (APRA). SuperLife refers to the SuperLife KiwiSaver scheme (KSS 10022). 01

2 is often higher (e.g. 28% versus 15%), it is applied to less of the total return and so for many investors it will result in less tax paid. First home withdrawal While you cannot withdraw any, Australian super transfer value received to help buy your first home, you can withdraw the investment earnings earned on it while it is in KiwiSaver. A person looking to buy their first home may gain an advantage if they transfer their Australian superannuation balance sooner, as the investment earnings earned while it is in New Zealand can be withdrawn for this purpose. Overall, for most people, the lower fees, tax efficiencies and investment flexibility of SuperLife will favour the transfer option. However, most are likely to make the decision on the basis of convenience and where they will retire. Also, many KiwiSaver schemes may not have the fee advantage of SuperLife, so which KiwiSaver scheme you transfer to is also important. Common questions If I have an Australian superannuation fund, do I have to transfer? No. Transferring is voluntary. You should only do so, if you decide it is best for you. If I transfer my Australian superannuation to KiwiSaver, can I withdraw the money to help buy my first home? No. The money transferred must stay for retirement. However, the investment earnings on the transfer value can be withdrawn as part of the first home withdrawal. If I subsequently return to Australia, can I transfer my money back to Australia? Yes. In addition, you can transfer your other KiwiSaver money as well. If I subsequently move to a new country (besides Australia), can I transfer the money transferred from Australia, to the new country? No. The money must stay in KiwiSaver in New Zealand, or must be transferred back to Australia. If I move to Australia, can I still take the alternative cash option, after I have been away for 12 months? No. If you emigrate to Australia, the option of withdrawing your KiwiSaver Account balance (excluding the MTCs) in cash after 12 months available for other countries does not apply. If I retire early, can I withdraw the money transferred from Australia before age 65? Yes. If you retire on or after age 60 and meet the Australian definition of retirement, you can receive part of the Australian transfer value portion of your KiwiSaver Account, without having to wait until your KiwiSaver Retirement Age. Typically, somewhere between 4% and 10% may be 02

3 withdrawn each year. The balance of your KiwiSaver Account is still locked in until your KiwiSaver Retirement Age. What is my KiwiSaver Retirement Age? For most people, this is the age of eligibility for NZ Superannuation (currently 65). However, if you joined KiwiSaver after age 60, it will be 5 years after you joined. Can I withdraw the money transferred from Australian if I suffer significant financial hardship? Yes. The money transferred from Australian can be withdrawn in cases of significant financial hardship. Remember, significant financial hardship is subject to trustee approval and there are strict legislative criteria. Is the money I transfer from Australia taxable? No. The Aussie Transfer Value will be paid to your New Zealand KiwiSaver Account tax free. When it is ultimately paid out of KiwiSaver, it will also be paid out to you tax free. Who is eligible to transfer their Australian superannuation to New Zealand? You may be eligible if you: have returned to New Zealand (or emigrated here) from Australia; and have savings in a complying Australian superannuation fund (self-managed super funds and defined benefit funds are excluded). You can find out which Australian funds comply by using the search engine available at You need to be a member of a KiwiSaver scheme before you can transfer your savings. The SuperLife KiwiSaver scheme investment statement is available online at What if I do not know who my Australian provider is? If you do not know or are unsure, go to and search superseeker. SuperSeeker will list your Australian super providers. You need your Australian Tax File Number to access this service. If you don t know it, contact the Australian Tax Office (ATO) on (you will need to confirm the address ATO holds on file for you before they will provide this information; your former employer in Australia or your Australian bank may be able provide the address). How do I transfer? First, contact your Australian super provider(s) to find out their process for transferring; To avoid delays, you will need to provide all of the documentation they request; 03

4 If you have more than one Australian super account, you will need to contact each provider; You need to provide them with your NZ IRD number and your KiwiSaver member number so that we can identify the payment. To help you, you can complete the attached form and we will do the initial work for you. How long will it take? Your Australian provider has 30 days to complete the transfer. The 30 days starts from the date they receive all the information they need and not when you first apply. You can reduce the time by ensuring you provide all of the documents they require. When we receive the payment from the Australian provider, it will be put in your KiwiSaver Account immediately. If you have several Australian superannuation funds, payments may arrive at different times. We will tell you when we receive the money. Where should my Australian provider pay my savings? By Telegraphic Transfer Bank name: ASB Bank Account name: SuperLife KiwiSaver Account number: Payment reference: Use your NZ IRD number (we need this to identify your payment). By Cheque Payable to the SuperLife KiwiSaver scheme. Ask your provider to print your IRD number on the back of the cheque so we know the payment is for you Charlotte Street, Eden Terrace, Auckland 1021 PO IT S Box YOUR 8811, Symonds LIFE; MAKE Street, IT A SUPERLIFE. Auckland

5 Australian superannuation transfer form Use this form: To arrange the transfer of your balance held under an Australian superannuation scheme regulated by the Australian Prudential Regulatory Authority (APRA) to your KiwiSaver Account under the SuperLife KiwiSaver scheme ( SuperLife ). Send the completed form and supporting documentation to SuperLife Limited. If you would like help in completing the form, phone us on If you are not a member of SuperLife, you will also need to join SuperLife by completing a membership form at the back of the investment statement which is available from SuperLife. Your details Name: Date of birth: / / (dd/mm/ccyy) Phone: ( ) Home address SLKS Town/ city Post code: Last known Australian address: NZ IRD number: - - Australian Tax File No.* *If you do not know your Australian Tax File Number, please call the Australian Tax Office on and ask to be transferred to personal tax enquiries. They will ask you for your name, date of birth and a last known address in Australia. Details of the Australian superannuation scheme from which you wish to transfer Name of Australian superannuation scheme: Name of manager/provider: Scheme ABN: Account/membership/policy number: Additional information: To help us with the transfer, please attach: or A copy of a recent statement from your Australian superannuation scheme A copy of your Australian superannuation scheme Membership Certificate If you have more than one scheme, attach details of each one you wish to transfer to SuperLife. Authorisation I authorise SuperLife to use my personal information to make enquiries on my behalf regarding any superannuation money I may be entitled to. I understand that my personal information may be passed on to the Australian Tax Office, AusFund and providers of superannuation, or other entities that may assist in finding any Australian superannuation balances I have and assisting with the transfer. I also authorise any entity is contacted by SuperLife Limited, regarding my superannuation, to release all information about me and my superannuation to SuperLife, as my agent, and to take instructions from SuperLife Limited. I understand that I may have to provide any additional information required by the trustee of the Australian superannuation scheme. Your signature: Date: / / (dd/mm/ccyy) 01