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Re: Using Kiwisaver for FHSS

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Newbie

Replies 0

Hi.

You cannot withdraw a single cent from kiwisaver towards first home in Australia. I know it's a shame and it delayed our plan to buy a house in Australia too but we got one now.

After i found out the above, i decided to keep my kiwisaver in NZ with Simplicity and i get much better returns and less than half the fee compared to Australian super providers
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Newbie

Replies 0

Hi Victoria,

 

Glad to hear you are making the move across the ditch and welcome across Smiley Happy

 

The link on the ATO website has just been updated to the one bellow and about a quarter of the way down is the section about Kiwisaver rollovers. Generally speaking the rules are quite similar to Australian made contributions, voluntary contributions made by you and your partner (into your own respective accounts) should be eligible while mandated employer contributions would not. You can have a look at the link for a full list, alternatively the ATO can be contacted from overseas contact information.

 

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

 

I would also recomend that you speak to both the outgoing and incoming superfunds and ensure they can transmit the information about this breakdown. Without it, the Australian fund may have difficult discerning the different contribution types.

 

Hope this helps Smiley Happy

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Most helpful response

ATO Certified Response

Devotee Super Specialist

Replies 7

Hi @kiwi_sam,

 

I can aprecitate it has been some time since your original enquiry. However, after a recent review I would like to confirm KiwiSaver and other foreign fund transfer amounts are eligible for calculating your maximum FHSS release. 

 

Importantly, when looking to utilise your KiwiSaver funds you should be aware that the following contributions are not eligible for release:

 

  • Super guarantee (SG) contributions made by your employer
  • Mandated employer or member contributions made for you under an award, industrial agreement
  • Member contributions made for you by your spouse, parent or other friends or family
  • Amounts you receive under a contributions-splitting arrangement
  • Government co-contributions
  • Contributions under a structured settlement or personal injury order
  • Amounts contributed to super as part of the small business CGT concessions
  • Amounts transferred from a KiwiSaver scheme that are Australian-sourced amounts or returning New Zealand-sourced amounts
  • Applicable fund earnings from a foreign fund transfer that you elect to include in the receiving fund’s assessable income.

 

Once your funds have been transferred, you can find information about how to access these funds on the ATO Applying to release your savings page and you may also find our First Home Super Saver Scheme FAQs helpful.

 

Thanks,

Mark

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Newbie

Replies 1

So what happens to the people who have bought their house and lost on because the policy wasn't mature?

Can they still get it out by backdating it?

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Community Manager

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Hi @kiwi_sam,

 

Understandably, its very frustrating when the rules are changed.

 

As I am sure you are aware we only administer the law and currently we have not received any information regarding backdating.

 

Check with your local federal member of parliament to see if there is anything happening with this topic.

 

Thanks

 

KylieS

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I'm new

Replies 1

Hi Mark,

Thanks for this detailed answer - I’ve been reading this thread over the last few weeks and have a few further questions as my wife and I look to see whether it’s possible for us to utilise FHSS with KiwiSaver.

My interpretation of the ATO certified response is that employee contributions made to KiwiSaver (which as the original poster stated are the equivalent of ‘voluntary’ contributions) are eligible for withdrawal.

My question is around the dates with which these contributions would be considered for release. Would they be assessed based on the date of the funds entering an accepting Australian super provider account, or the date the original contribution was made in NZ?

Also, how would this impact the yearly cap on withdrawals under FHSS?

Any help much appreciated.

A.
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Devotee

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Hi a_d_g

 

The kiwisaver amount would count as a contribution on the date it's transferred into an Australian super account. There's no reporting of when amounts were originally paid into the kiwisaver account.

 

When you say 'yearly cap on withdrawals' I assume you're talking about the cap of $15,000 of contributions that counts towards the maximum release amount of $30,000 under the scheme. The kiwisaver transfer would count as a contribution in the financial year in which it's transferred. Eg if you transfer $20,000 from a kiwisaver scheme in 2019-20, and you also make $5,000 of personal contributions in 2019-20, only $15,000 of the total $25,000 contribution would count towards the amount that can be released under FHSS. Whereas if you transfer the $20,000 in 2018-19 and make the $5,000 contribution in 2019-20 you'd have $15,000 from 2018-19 plus $5,000 from 2019-20 eligible to be released.

 

I'm an ATO employee voluntarily providing my time here

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Newbie

Replies 2

Hi Mark,

 

I was glad to see the QSuper logo as your profile pic.

I'm a public servant/government employee and my default super is QSuper, so I cannot change this, can I?

From what I've looked into so far, QSuper does not accept Kiwisaver transfers from Nz, therefore I cannot access and use my Kiwisaver for FHSS, or can I?

 

 Can I still access my Kiwisaver for the FHSS?

 Appreciate a reply.

 Paul

 

 

 

 I'm wanting to use my 

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Devotee Super Specialist

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Hi @paullafaele,

 

You are correct, QSuper is the default fund for Queensland Government employers. However, since 1 December 2016, the Queensland State Government passed legislation, which allows Queensland Government employees to have the option to nominate another super fund if they wish. If you would like to do so, please speak to your pay office to enact your Choice of Fund.

 

Prior to enacting choice of fund, you may wish to give the QSuper Member Services team a call on 1300 360 750 to discuss how this may impact your account.

 

In relation to consolidating your KiwiSaver funds into QSuper, although there are Trans-Tasman portability arrangements in place to allow people to transfer super between Australian and New Zealand funds. Unfunded public sector super schemes such as QSuper, are exempt. As a result, we’re unable to accept a roll over from your New Zealand super account.

 

For more information please refer to the Australian Taxation Office’s Trans-Tasman retirement savings portability scheme for individuals page.

 

KiwiSaver contributions that are eligible for release under the First Home Super Saver Scheme are listed earlier in this thread. Whilst you may have eligible contributions, it is important to note QSuper is still unable to receive KiwiSaver funds at this time.

 

I hope this answers your questions Paul.

 

Thanks,

Mark

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Newbie

Replies 0

Hi Mark, 

 

This is definately helpful. Thank you for responding quickly. 

 

Have a great day.