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Re: Kiwisaver Transfer and FHSS

Newbie

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Replies 12

Hello.

I emmigrated from NZ to Australia around 18 months ago and now want to purchase a property in QLD.

I have funds in my Super account and want to transfer in the proceeds of my KiwiSaver account to be able to access them under the FHSS rules to withdraw 15,000 dollars towards the required deposit.

 

I have spoken to my Super provider and although they say they are able to accept Kiwisaver funds they are unsure as to weather I would be able to access them under the FHSS.

 

I would be very grateful if you could shed some clarity on this issue, obviously the funds would be deposited post 2017 and they are my own money.

 

Thanks in advance.

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ATO Certified Response

Devotee

Replies 11

Hi Simon1

 

Any amount transferred from a kiwisaver account to an Australian super fund account will not count towards the amount eligible to be released under the FHSS scheme.

 

The amount eligible to be released is (in basic terms) made up of voluntary employer contributions (generally contributions made under a salary sacrifice arrangement) and member contributions.

 

The FHSS provisions refer back to the SIS regs for the definitions of employer and member contributions, and the definition of contributions in SISR 1.03 excludes benefits that have been rolled over or transferred to the fund.

 

The reporting instructions we provide to super funds advises them to report any kiwisaver amounts they receive (except where money has previously bounced back and forth between Australia and New Zealand) as a non-assessable foreign fund amount. These amounts do not count towards the eligible releasable amount.

 

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12 REPLIES 12

Most helpful response

ATO Certified Response

Devotee

Replies 11

Hi Simon1

 

Any amount transferred from a kiwisaver account to an Australian super fund account will not count towards the amount eligible to be released under the FHSS scheme.

 

The amount eligible to be released is (in basic terms) made up of voluntary employer contributions (generally contributions made under a salary sacrifice arrangement) and member contributions.

 

The FHSS provisions refer back to the SIS regs for the definitions of employer and member contributions, and the definition of contributions in SISR 1.03 excludes benefits that have been rolled over or transferred to the fund.

 

The reporting instructions we provide to super funds advises them to report any kiwisaver amounts they receive (except where money has previously bounced back and forth between Australia and New Zealand) as a non-assessable foreign fund amount. These amounts do not count towards the eligible releasable amount.

 

I'm an ATO employee voluntarily providing my time here

Newbie

Replies 10

Hi,
I can’t see a date when this was posted and answered, but I hope to get some clarification on the above answer which states that KiwiSaver amounts can not be eligible for FHSS.

However in this document https://www.ato.gov.au/law/view/document?DocID=GDN/GDN20181/NAT/ATO/00001&PiT=**TFN removed**35958 it states that:

“If you transfer an amount into an Australian super fund from a KiwiSaver scheme, the amount will be an eligible contribution (except for certain amounts listed below).”

Then:

“The following contributions are not eligible:

[...]
·amounts transferred from a KiwiSaver scheme that are Australian-sourced amounts or returning New Zealand-sourced amounts”

My understanding from this document is that you CAN use KiwiSaver contribution as an eligible releasable amount for FHSS, providing that you did not initially transfer those funds from Australia to NZ, OR that you are not an Australian who has migrated to NZ, earned KiwiSaver there, and are now wanting to return to Australia and consolidate your superannuation.

Can anyone confirm this is a correct interpretation? Thank you.

ATO Community Support

Replies 1

Hi @cwontm,

 

Welcome to the Community.

 

This thread was started in August 2018 - before the super guidance note GN 2018/1 was published on 1 November 2018.

 

You've raised a great question though - we've asked our technical experts to look into this and we'll let you know as soon as we have a response.

 

Thanks, NicM.

I'm new

Replies 0

Hi guys,

 

I am very intersted in this question too.

I have read this page (https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/trans-tasman-ret...) where it says "New Zealand-sourced retirement savings transferred to Australia are treated as non-concessional (or personal) contributions." so ATO does treat such transfer as a non-concessional (or personal) contribution.

 

Now this (https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Sch... says "

From 1 July 2017, you can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into your super fund to save for your first home. From 1 July 2018, you can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home." so logically speaking - I should be able to access (part of) those funds under FHSS schema.

 

Please clarify.

 

Thank you.

ATO Community Support

Replies 7

Hi @cwontm and @AlexR,

 

Thanks for your patience while we checked this out with our technical experts.

 

If you’ve transferred amounts into your Australian super fund from your New Zealand Kiwisaver, the following amounts are not eligible contributions for the FHSS scheme:

  • Australian-sourced amounts, and
  • returning New Zealand-sourced amounts.

Other amounts you transfer from your Kiwisaver to your Australian super fund may be eligible contributions for the FHSS scheme. 

 

As we can provide general information here on Community, we'd encourage you to write in for interpretive advice if you'd like to know whether amounts you've transferred (or are looking to transfer) from a Kiwisaver will be eligible contributions for the FHSS scheme.

 

You can write to us at:

 

Australian Taxation Office
PO Box 3100
PENRITH NSW 2740

 

You can also fax your request to 1300 669 846.

 

Thanks, NicM

 

Newbie

Replies 1

@cwontm and @AlexR,

I also just have recently emigrated from New Zealand and have the same questions and although I am about 50% sure I was wondering if you guys have made any progress with regards to the topic of using your KiwiSaver 4 first time home buyer Australia

Cheers

Community Moderator

Replies 0


Hi @TheKooster,

 

 

Thanks for your question,

 

 

Check out the post from NIcM it states:

 

 

If you’ve transferred amounts into your Australian super fund from your New Zealand Kiwisaver, the following amounts are not eligible contributions for the FHSS scheme:
•Australian-sourced amounts, and
•returning New Zealand-sourced amounts.

Other amounts you transfer from your Kiwisaver to your Australian super fund may be eligible contributions for the FHSS scheme.

 

 

There is also information on our website FHSS page.

 

 

Thanks

 

 

KylieS

Newbie

Replies 4

Hi NicM,

 

My husband and I transferred our NZ kiwisaver to Australia super on July 2020. 

All of the amount are eligible conributions for the FHSS scheme.  Amounts are:

Mine         $25,357.57
Husband  $48,202.24

 

Can we use the FULL total amount to be withdrawn under the FHSS?

 

Thanks so much!

Ibyang

Newbie

Replies 3

Regardless of the amount you transfered you can only use $15K EACH rowards FHSS