There are some differences between Aussie super schemes and KiwiSaver schemes which may affect the amount you can get when you can withdraw your savings, particularly if you have a large sum of money in Aussie super savings. You should consider the following factors when deciding whether to transfer your Aussie super savings to New Zealand. You may also want to seek independent financial and tax advice before proceeding with the transfer.
- There is a difference in the rate of tax for investments between Australia and New Zealand. Depending on your situation you might pay less tax on your investment if you leave it in Australia.
- Your Aussie super savings will need to be converted to New Zealand dollars when the transfer is completed. Because the time it takes to process a transfer can vary and because exchange rates fluctuate, there is a risk that the exchange rate that applies to your transfer might adversely affect your retirement savings.
- You may have benefits such as guaranteed retirement payments or insurance associated with your Aussie super savings that you may have to give up if you transfer your savings to New Zealand. It is worthwhile checking with your Aussie super provider if any of these benefits apply to your super savings before you proceed with a transfer.