Relocating across the Tasman is a major life move, and for New Zealanders looking to buy their first home in Australia, understanding how KiwiSaver can support this journey is crucial.
KiwiSaver is a valuable financial tool, but there are strict rules about when and how it can be used overseas. This guide covers everything you need to know to make informed decisions about your savings, property purchase, and financial future.
Can you use your KiwiSaver to buy a home in Australia?
In short, you cannot use your KiwiSaver funds directly to buy a home in Australia through the standard first home withdrawal scheme. According to KiwiSaver.govt.nz, first home withdrawals are permitted only for properties purchased within New Zealand.
If you are moving permanently to Australia, however, you may be eligible to withdraw your total KiwiSaver balance after 12 months of confirmed overseas residence. Although this withdrawal is not specifically for a home deposit, it can indirectly support your property purchase in Australia once the funds are released.
Eligibility requirements for accessing KiwiSaver abroad
To access your KiwiSaver funds after relocating, certain criteria must be met:
- You must have been living overseas for at least 12 months.
- You must provide proof of permanent emigration, such as Australian residency documents or employment contracts.
- A formal application must be lodged with your KiwiSaver provider, including necessary documentation.
- You must agree that any Government contributions (Member Tax Credits) may be deducted from your withdrawal.
As outlined by Inland Revenue New Zealand, these rules ensure that the primary purpose of KiwiSaver remains retirement saving, even when members emigrate.
Understanding your KiwiSaver eligibility overseas is essential before making any plans to access your funds for a home purchase.
How the KiwiSaver withdrawal process works when buying in Australia
If you meet the eligibility conditions, you can apply to withdraw your KiwiSaver balance in full. The process typically involves:
- Contacting your KiwiSaver provider to begin the withdrawal process
- Providing formal proof of permanent residence in Australia
- Completing required documentation, including a statutory declaration
Keep in mind that partial withdrawals are not allowed. Once approved, the full balance will be released and can be used for any purpose – including supporting your first home deposit in Australia. However, you will no longer have an active KiwiSaver account, so it’s important to factor this into your financial planning for relocation.
Important considerations before using KiwiSaver for an overseas property
Using your KiwiSaver funds overseas involves important financial implications:
- Loss of Retirement Savings: Withdrawing your entire balance means you are no longer building long-term retirement security through KiwiSaver.
- Tax and Legal Requirements: You may face specific taxation rules in Australia when transferring or using these funds.
- Alternative Support Schemes: Australia offers its own first home assistance options, such as the First Home Owner Grant, which may be worth considering.
Understanding overseas property rules and getting advice from qualified professionals ensures you make decisions that fit both your short-term needs and long-term financial goals.
Tips for first home buyers moving from New Zealand to Australia
If you’re starting an overseas journey from New Zealand, careful preparation can help smooth your transition:
- Research Australian property markets early to understand affordability.
- Investigate available homebuyer grants and incentives in your state.
- Secure pre-approval for Australian financing well in advance.
- Plan your move carefully, ensuring documents and financial records are readily available.
- Budget conservatively to accommodate exchange rates, stamp duties, and additional settlement costs.
Buying a home abroad is a significant step; careful planning improves your chances of success.
Common challenges Kiwis face when using KiwiSaver in Australia
Kiwis relocating often face obstacles such as:
- Misunderstanding the 12-month residency requirement.
- Being unaware of the full withdrawal (not partial) rule.
- Underestimating currency exchange impacts on available deposits.
- Lack of knowledge about Australia’s property purchase regulations.
By preparing ahead and knowing the rules for accessing KiwiSaver funds, you can minimise surprises and move forward with confidence.
Start your new chapter with expert support
If you are making the move from New Zealand to Australia, it pays to have expert guidance on your side. Whether you are organising your finances or planning your relocation logistics, having the right support can make all the difference. Grace NZ specialises in helping Kiwis plan a seamless transition – from moving logistics to financial advice connections. Start by getting a quote online and take the first step toward a smooth, stress-free move.
