Leaving New Zealand involves more financial admin than most people plan for. KiwiSaver rules differ significantly depending on where you’re going and whether you’re leaving permanently. Getting your tax residency, property, and accounts sorted before you go can save thousands.
If you're leaving NZ permanently, your KiwiSaver options differ: moving to Australia allows a transfer to a complying Australian super fund; moving elsewhere means your balance is locked until age 65 (unless financial hardship). Notify IRD of your departure, file a final tax return, and decide whether to keep or close your NZ bank accounts.
KiwiSaver — Your Biggest Financial Decision When Leaving NZ
Moving to Australia permanently
If you’re emigrating permanently to Australia, you can transfer your KiwiSaver balance to an Australian Registrable Superannuation Entity (RSE) — i.e., a complying Australian super fund.
What transfers:
- Your KiwiSaver balance (own contributions + employer contributions + government contributions + investment earnings)
Tax on transfer:
- IRD taxes the transfer — the “employer and government contributions” component is taxed at your marginal NZ rate before the transfer is made
- Your own contributions are not taxed on transfer
Process:
- Open an Australian super fund account (or have one from previous Australian employment)
- Contact your KiwiSaver provider and request the Australian transfer form
- Your KiwiSaver provider coordinates with IRD and the Australian fund
- Typically takes 6–10 weeks
Access in Australia: Once transferred, the money is governed by Australian super rules — accessible from age 60 (preservation age).
Should you transfer? If your Australian super will accumulate 11.5% employer contributions for many years, and if you’re under 55, transferring makes sense to consolidate. If you’re close to NZ retirement age (65), leaving it in NZ KiwiSaver and withdrawing at 65 is simpler.
Moving anywhere else (not Australia)
If you’re moving permanently outside Australia and NZ, you cannot withdraw KiwiSaver early — except in genuine financial hardship (assessed by IRD).
Your KiwiSaver balance remains locked until age 65, regardless of where you live. It continues to be invested and grow (you just can’t access it). You can continue to make voluntary contributions if you wish, but employer and government contributions stop once you’re no longer a NZ employee.
Important: “Permanently leaving NZ” to a non-Australian country does not trigger a KiwiSaver withdrawal. This surprises many people. The balance stays with your chosen KiwiSaver provider until you turn 65.
Practical steps:
- Leave your KiwiSaver in a fund appropriate for a long-horizon investment (likely growth, since you won’t access it for many years)
- Keep your NZ contact details updated with your provider
- Keep your IRD number — you’ll need it at age 65 to access the funds
Tax Residency — When You Stop Being an NZ Taxpayer
NZ tax residency rules
You cease to be an NZ tax resident when both of the following are true:
- You are absent from NZ for more than 325 days in any 12-month period AND
- You no longer have a “permanent place of abode” in NZ (i.e., you’ve sold or closed up your NZ home)
Simply leaving does not immediately end your NZ tax residency. If you keep a home in NZ or return frequently, you may remain an NZ tax resident and be liable for NZ tax on your worldwide income.
Notify IRD
When you leave NZ permanently:
- Notify IRD of your departure date and overseas address (through myIR or by post)
- File a final NZ tax return (IR3) for the year you departed — you’re taxed as a NZ resident for the period you were in NZ, and as a non-resident for the rest of the year
- IRD will issue any final refund or assessment
Non-resident withholding tax (NRWT)
Once you’re a non-resident, any NZ income (NZ bank interest, NZ dividends, NZ rental income) is subject to Non-Resident Withholding Tax (NRWT) rather than PAYE. NRWT rates are set by NZ’s double tax agreement with your new country — typically 10–15% on interest, 15% on dividends.
NZ Property — Selling or Keeping It?
Bright-line rule
If you sell your NZ property after leaving:
| Property type | Bright-line test |
|---|---|
| New build (acquired after 27 March 2021) | Taxed if sold within 2 years |
| Existing property (acquired after 27 March 2021) | Taxed if sold within 2 years |
| Properties acquired before 27 March 2021 | Earlier rules apply; most exempt |
From 1 July 2024, the government reset the bright-line test to 2 years for all properties. This means most NZ property sellers are now outside the bright-line window if they’ve owned for more than 2 years.
Keeping your NZ property as a rental
If you keep your NZ property and rent it out:
- Rental income is taxable in NZ (NRWT or standard income tax on return)
- You can deduct expenses (interest, rates, insurance, repairs, property management fees)
- A property manager in NZ can handle day-to-day management
- You may also have tax obligations in your new country on NZ rental income — check double tax agreement rules
Selling before you leave
Selling before departure is generally simpler — you avoid the ongoing tax obligations and bank account management needed for NZ rental income from overseas.
NZ Bank Accounts — Keep or Close?
Reasons to keep your NZ bank account open
- Receive your final tax refund from IRD
- Receive KiwiSaver at age 65 (if leaving to non-Australia destination)
- Ongoing NZ property management / rent receipts
- Return visits to NZ are more convenient with a local account
Reasons to close
- Monthly maintenance fees on inactive accounts
- Complexity of NZ AML compliance from overseas
- Risk of account being frozen if inactive for extended periods
Recommendation: Keep at least one NZ bank account open until your final IRD tax return is settled and any refund received. After that, close accounts you won’t need — most NZ banks allow online account closure.
What happens to direct debits and payments?
Cancel all NZ direct debits and automatic payments before leaving:
- Phone plan
- Power and internet (give required notice — usually 30 days)
- Streaming services billed in NZD
- Insurance policies (note cancellation fees)
- Gym memberships (often have locked-in terms)
Filing Your Final NZ Tax Return
File an IR3 (individual income tax return) for the tax year in which you left. Include:
- NZ income earned up to your departure date
- Any NZ interest earned while you were a resident
- KiwiSaver PIE income (auto-included)
You can file via the IRD myIR portal from overseas. You’ll need your myIR login — set this up before you leave if you don’t already have it.
Common sources of final tax refund:
- PAYE over-deducted on a partial year’s income
- Working for Families credits if applicable
- Interest deducted at wrong NRWT rate
Superannuation — NZ Superannuation Overseas
If you’re already receiving New Zealand Superannuation (NZ Super) and you move overseas:
- NZ Super continues to be paid if you’ve met the residency requirements (10 years in NZ after age 20, including 5 years after age 50)
- Overseas deductions apply: If your new country has a social security agreement with NZ, NZ Super may be reduced by the amount of pension you receive from that country
- Tax: NZ Super paid to non-residents is subject to NRWT
See our NZ Superannuation guide for residency and eligibility rules.
Leaving NZ — Complete Financial Checklist
Before you leave
| Task | Notes |
|---|---|
| Set up myIR online access | You’ll need it to file from overseas |
| Notify IRD of departure date | Do this before you go |
| File any overdue tax returns | Clear your IRD account |
| Decide KiwiSaver strategy | Transfer to AU super, or leave locked until 65 |
| Sell or arrange management of NZ property | Set up property manager if keeping |
| Cancel NZ direct debits and subscriptions | 30-day notice often required |
| Update your KiwiSaver provider with overseas address | Essential for future correspondence |
| Arrange overseas bank account in your destination country | Have it ready before leaving |
| Cancel or transfer NZ insurance policies | Life, health, contents, car |
| Update NZ electoral roll | Remove yourself if leaving permanently |
After you leave
| Task | Notes |
|---|---|
| File your final NZ IR3 tax return | Due 7 July following the tax year |
| Collect any tax refund via your NZ bank account | Keep account open until received |
| Close unnecessary NZ bank accounts | Once refund and final payments cleared |
| Transfer Australian super (if applicable) | If moving to Australia |
| Update KiwiSaver provider contact details | Annually if living overseas long-term |