Unlike in New Zealand, your contributions do not come out of your pay. In Australia, your employer pays a compulsory sum of money into a super fund of your choice. This sum is known as superannuation guarantee (SG) and is currently 11.5% of your earnings (including bonuses, commissions and loadings). This rate will increase to 12% on 1 July 2025. 

Your super is then invested by your superannuation fund in a range of assets, such as shares, private equity and property, to help grow your balance. 

You can grow your retirement savings by:

• Receiving contributions from your employer
• Making additional personal contributions by yourself or your spouse
• Receiving a government super contribution (if you’re eligible)
• If you have more than one super fund, combining your super accounts into one¹
• Transferring your KiwiSaver to a KiwiSaver accepting fund such as First Super
• Earning positive investment returns and changing how your super is invested 

¹Before you combine accounts:

• Check your insurance arrangements. If you have insurance in your other super accounts, you can apply to transfer it to First Super by completing an Application to Transfer Insurance Cover form. This needs to be done before combining super accounts. Otherwise, the insurance in your other fund will cease. We recommend you seek financial advice on this.
• If you’re in a Defined Benefit fund. Defined benefit accounts are older style accounts and moving such amounts to your First Super account may not be in your best interests. Obtaining financial advice is particularly important in such instances. We won’t transfer in a defined benefit account unless you have specific advice from an adviser confirming that it’s suitable for you.
• Any applicable fees.

You can save on admin fees and taxes by transferring your KiwiSaver over to an APRA regulated super fund which accepts KiwiSaver transfers. 

Or even better, consider maximising your retirement savings by having your KiwiSaver and superannuation in one account.

NZRelo has specifically partnered with First Super an APRA regulated industry super fund. They have helped thousands of New Zealanders transfer their KiwiSaver over to Australia. 

Out of 100+ super funds in Australia, only a handful accept KiwiSaver transfers. Read the rules around KiwiSaver transfers before you transfer your KiwiSaver to Australia.

Did you know you have default insurance through super? Default insurance cover is there to provide a safety net for you and your family against life’s unexpected events. Insurance cover through super is based on your age, account balance and eligibility.  First Super offers Life and Total and Permanent Disability, and you can apply for Income Protection which can help pay bills if you cannot work due to illness or injury.

Money paid into your super account by your employer is taxed at 15%. Voluntary contributions are taxed differently depending on whether you salary sacrifice through your employer or make a contribution from your after-tax income.

• Salary sacrifice (also known as pre-tax contribution or concessional contribution) is taxed at 15%.
• After tax-contribution (also known as non-concessional contributions) – you don’t pay any contributions tax.

If you earn $37,000 or less, the tax is paid back into your super account through the Low income super tax offset (LISTO).

If your income and super contributions combined are more than $250,000 you pay Division 293 tax, an extra 15%.

Make sure you provide your super fund your Tax File Number to avoid paying extra tax on your super.

Earnings on investments within your super fund are taxed at 15%.

If you leave your KiwiSaver in New Zealand earnings on your investment within your KiwiSaver fund will be taxed 28%. If you transfer your KiwiSaver to Australia, then your earnings on investments will be taxed at 15%.

If you have transferred your KiwiSaver over to Australia, you will have your KiwiSaver transfer component and a super component in the one account. 

KiwiSaver component

You can access your KiwiSaver transfer balance when you reach the age of 65. This is because your KiwiSaver component is still subject to New Zealand regulations.

Superannuation component

Investment earnings made from your KiwiSaver transfer will be in Australian dollars and allocated to the superannuation component in your account. Earnings on your investments are subject to Australian superannuation rules. You can access your superannuation when:

• You turn 60 and are fully retired
• You are 60 or over and stop an employment arrangement 
• You may have limited access through Transition to Retirement account between age 60-64
• You turn 65, regardless of whether you are still working or fully retired.

Super is designed as a long-term investment to give you an income in retirement, so normally you can’t access your super until you are 60 and fully retired, or at age 65. However, there are certain situations where you may be eligible to access your super early:

• Using your KiwiSaver and super towards the purchase of your first home in Australia through the First Home Super Saver scheme
• Severe Financial Hardship
• Compassionate Grounds
• Terminal illness or permanent disability

These are subject to eligibility and Australian government regulations.