2015 - 2016

Investment

Kiwisaver

Mr G had been living permanently in Australia for several years and wanted to transfer his KiwiSaver savings to his Australian superannuation fund.  However, his Australian superannuation provider wouldn’t accept such a transfer.  In January 2016, he contacted his bank and KiwiSaver provider, and asked it to withdraw his savings and pay the money to him directly, on the grounds of permanent migration.  The bank declined to do so and advised Mr G the law prevented it from doing this. 

Since mid-2013, KiwiSaver members living permanently in Australia can no longer withdraw KiwiSaver savings as cash on the grounds of permanent migration.  Members who have permanently migrated to other countries can still withdraw funds (subject to certain requirements).

KiwiSaver members living in Australia may transfer their KiwiSaver savings to a compliant Australian superannuation scheme.  But this is voluntary and Australian superannuation providers aren’t obliged to accept KiwiSaver savings.

Mr G’s Australian superannuation fund provider didn’t accept KiwiSaver transfers and he couldn’t find a provider that would.   He believed that on this basis the bank ought to release his funds to him.

Irrespective of the position of Mr G’s Australian superannuation provider, Mr G’s bank was required to comply with the KiwiSaver Act so couldn’t release his savings. We explained we couldn’t find against the bank because it was complying with the legislation and we also couldn’t require it to release his savings.

We explained to Mr G that he had the option of finding a Australian provider that would accept KiwiSaver savings or, he could leave his savings in New Zealand until he became eligible (currently age 65) – or until any other limited grounds for withdrawing applied.  Mr G accepted our explanation and withdrew his complaint. 

More information on our approach to KiwiSaver complaints is in our Quick Guide to KiwiSaver.