Don’t let your KiwiSaver dwindle away. Protect it, don’t lose it.
If you’ve been reading through our content on superannuation and KiwiSaver transfers, one thing is for sure, you’re looking into increasing your understanding of a reasonably complex and dry topic.
The following information is vital for you to get a good understanding of weighing up your choice of funds, whether to transfer or not and what action to take in which country.
If you are about to become a non-resident of New Zealand for tax purposes (i.e. moving to Australia) or are already living in Australia, you will be taxed at 28% rate on the investment earnings in your KiwiSaver each year.
It’s all about your PIR!
Meaning your ‘Prescribed Investor Rate‘ (PIR) and your PIE (Portfolio Investment Entity). If you are about to move to Australia and you decide not to transfer your KiwiSaver you should notify your PIE that you are moving countries so that your PIR is adjusted. Failure to do so will result in a 28% tax deduction on your KiwiSaver earnings each year. The alternative is to simply transfer it to WA Super and bring it with you.
If you have already moved to and have been working and living in Australia and you have not contacted your New Zealand PIE to notify them of your PIR circumstances and decided not to transfer your KiwiSaver, your KiwiSaver earnings will already be getting taxed at 28%.
You can learn about this from Inland Revenue, it takes 5 seconds!
Page updated 11/02/2020