Can I Use My KiwiSaver To Buy A House In Australia?
Yes, you can. If you are buying your first home, you can use funds from KiwiSaver as a deposit on the home. As per the Trans-Tasman Retirement Savings Portability, which was introduced in July 2013, you can transfer your retirement savings held in your KiwiSaver to Australia if you are emigrating from New Zealand to Australia. Let’s go through the process of transferring your KiwiSaver to Australia.
How To Transfer KiwiSaver To Australian Super
If you are moving permanently to Australia, you can transfer your KiwiSaver funds to a participating Australian super fund.
The first step to transferring your KiwiSaver fund to an Australian super fund is to get a Trans-Tasman Portability approval form.
- Fill out the form and return it to your Australian super fund.
- Once the paperwork is done, you will receive confirmation from your Australian super of the date the transfer was completed and successful.
To be eligible, you must:
- Have an Australian Tax File Number (TFN) to transfer your retirement savings to an Australian super account.
- Be a member of an Australian super fund that accepts KiwiSaver
- Have migrated to Australia and have an Australian home address
- Be willing to transfer the entire balance of your KiwiSaver
The Rules Of Transferring From A KiwiSaver Scheme
- You can transfer only to a complying Australian super fund that is regulated by the Australian Prudential Regulation Authority (APRA).
- You cannot transfer to a self-managed super fund
- You can only access the New Zealand-sourced component (which is the amount that you transferred from your KiwiSaver) when you reach the New Zealand age of retirement.
- You may not be able to transfer any of your KiwiSaver funds if the transfer exceeds the non-concessional contribution cap.
Why Should I Transfer My KiwiSaver To Australia?
- The funds can be used as a deposit for a home loan under the First Home Super Saver Scheme (FHSSS). Some lenders accept FHSSS funds to buy a first home.
- Generally, lenders consider accessible (not early access) Australian super as genuine savings.
- A transfer from the KiwiSaver scheme to a participating Australian super fund is not taxed.
- The transferred amount can be withdrawn tax-free once you satisfy the conditions of release.
Which Australian Super Funds Accept KiwiSaver?
Unfortunately, not all Australian providers accept KiwiSaver transfers. You will need to transfer with an APRA-regulated super fund that also participates in the KiwiSaver scheme. Check with your provider to make sure the transfer is possible and accepted.
Here is a list of Australian providers that accept KiwiSaver transfers:
- ClearView WealthFoundations
- Acclaim Wealth (previously known as AMG Super)
- Brighter Super (previously known as Energy Super)
- First Super
Home Loans For New Zealand Citizens
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