Ask Paul: Can I move my KiwiSaver to an Australian super fund?

Can New Zealanders move their KiwiSaver balances to an Australian superannuation fund?

Reader question

Dear Paul,

I have been mulling over my superannuation options as a New Zealander.

Initially I set myself up with an industry superannuation scheme through work, but when I move my KiwiSaver superannuation over to Australia I am limited to a handful of funds.

What are your thoughts on the funds that are available here, bearing in mind that I'm a 52-year-old mother of two teenagers with a 63-year-old husband. Your ideas would be most appreciated. - L

Paul's response

I learn from our readers on a very regular basis, and you have taught me something here. I had no idea that you could move KiwiSaver to Australia, let alone that only a few funds would accept KiwiSaver transfers.

Your information interested me, so I have chatted to some experts and I find, as you already know, that we have a Trans Tasman Portability Scheme, which sounds very grand.

The funds can't go to a self-managed super fund, you need to contact an 'accepting' fund to get a compliance letter and complete the Trans Tasman Portability Scheme form.

You also can't transfer in excess of the non-concessional contributions cap, but that is a pretty large amount, $120,000 a year or $360,000 over three years.

The funds you are limited to give you plenty of choice. I see First Super, an industry fund, is one of these accepting funds. There are quite a few funds you can use, but First Super is well regarded and offers a range of low-cost investment options.

As a large fund, I suspect they will have had plenty of experience to assist with the transfer.

I don't want to lump all super funds in the same basket, but as long as they are a large, low-cost fund, you are off to a good start.

Frankly, if you are going for a balanced or growth-type fund, any high-quality, large super manager will hold similar assets and give you similar returns.

The next bit is customer service and, here, your initial phone call and their follow-up will demonstrate their service standards. Maybe start by giving them a call.

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