If you’re leaving New Zealand permanently, your KiwiSaver savings don’t disappear — but how you access them depends on where you’re going. Australia has a separate set of rules from every other country, and timing matters.
The Two Scenarios: Australia vs Everywhere Else
| Destination | Can you cash out? | Wait period | Government contributions |
|---|---|---|---|
| Australia (permanent emigration) | No — must transfer to Aus super | No minimum wait | Not transferred (returned to IRD) |
| All other countries | Yes — cash withdrawal | 1 year after leaving NZ | Not paid out (returned to IRD) |
This is the most important distinction. If you’re moving to Australia, you cannot receive your KiwiSaver as cash — it must be transferred to an eligible Australian superannuation fund.
Leaving for Australia
The Trans-Tasman Transfer
If you permanently emigrate to Australia, you can transfer your KiwiSaver balance to an eligible Australian complying superannuation fund. Not all Australian super funds accept KiwiSaver transfers — you need to check with your chosen Australian fund.
What transfers:
- Your own contributions
- Employer contributions
- Investment returns
What does NOT transfer:
- Member tax credits (government contributions) — these are returned to IRD
When can you apply? There is no 1-year wait for a trans-Tasman transfer — you can apply once you’re established in Australia with an eligible super fund. However, you must have permanently emigrated.
How to apply:
- Open an eligible Australian super fund account
- Request your KiwiSaver provider’s transfer form (or your Australian fund may initiate it)
- Provide evidence of your Australian residency/permanent move
- Your KiwiSaver provider transfers the balance (minus government contributions)
What about temporary work in Australia? If you’re on a working holiday visa or temporary work visa in Australia, you are not permanently emigrating — the transfer rules don’t apply. Your KiwiSaver stays in NZ and you can continue voluntary contributions.
Leaving for Any Other Country
The 1-Year Rule
If you permanently emigrate to any country other than Australia, you can withdraw your KiwiSaver balance after 1 year of having left NZ permanently.
Requirements:
- You must have left NZ permanently — not on an extended working holiday or temporary basis
- 1 year must have passed since your departure
- You cannot apply while still in NZ based on future emigration plans
What you can withdraw:
- Your own contributions
- Employer contributions
- Investment returns
What you CANNOT withdraw:
- Member tax credits — these are returned to IRD, not paid to you
How to apply:
- After 1 year overseas, contact your KiwiSaver provider
- Request the permanent emigration withdrawal form
- Provide evidence of permanent emigration (foreign visa, tenancy/property records, employment overseas)
- Provider processes and pays to your nominated bank account (may need to be an NZ account initially)
Timeline: Typically 10–15 working days once documentation is complete.
Government Contributions — Why You Lose Them
Member tax credits (the government’s annual contribution of up to $521.43/year) are not paid out on emigration. They are returned to the Crown regardless of your destination.
This is written into the KiwiSaver Act — government contributions are conditional on you remaining in NZ and using the funds for retirement purposes in NZ. If you leave permanently, the Crown reclaims them.
This applies to both Australian transfers and all other country cash withdrawals.
What About Temporary Overseas Work?
If you’re working overseas temporarily (working holiday, contract work, secondment) with the intention of returning to NZ:
- Your KiwiSaver stays invested
- You can continue making voluntary contributions
- Your NZ employer contributions continue if you’re still on NZ payroll
- You do not qualify for an emigration withdrawal
“Permanent emigration” requires a genuine intention to leave NZ permanently — not just an extended stay.
Student Loan Consideration
If you have an NZ student loan, it becomes interest-bearing (3.5% annually) once you’ve been overseas for more than 6 months. This is separate from KiwiSaver, but if you’re planning to leave NZ permanently, consider paying down your student loan before going — the 3.5% interest can compound significantly over years abroad.
Tax on Emigration Withdrawal
A KiwiSaver withdrawal on permanent emigration is generally not subject to NZ income tax in your hands — the investment returns have already been taxed at your PIR rate while inside the fund. However, your destination country’s tax rules may apply — consult a tax adviser in your destination country.
Frequently Asked Questions
Can I withdraw KiwiSaver before I leave NZ? No — you must have actually left NZ permanently. You cannot pre-emptively withdraw before departing.
What if I return to NZ after withdrawing on emigration grounds? If you withdraw as a permanent emigrant and then return to NZ to live, you can re-enrol in KiwiSaver as a new member. However, you cannot reverse the withdrawal — the funds have been paid out.
Can I leave my KiwiSaver in NZ while living overseas? Yes. Leaving your KiwiSaver invested while working overseas (particularly for Australia, which has its own super system) is a valid option. Your balance continues to grow, and you can access it at 65 from anywhere in the world.
Do I need to notify IRD when I leave NZ? Not specifically for KiwiSaver, but you should update your address details with your KiwiSaver provider and IRD. If you’re stopping NZ employment, your automatic contributions stop anyway.
Can I transfer to an Australian super fund and then cash it out from Australia? Once your KiwiSaver is transferred to an Australian super fund, it is subject to Australian superannuation rules — including Australia’s preservation age (currently 60) and access conditions. You cannot immediately cash out after transferring; Australian super rules apply.