Difference between KiwiSaver and Superannuation

Let's dive into the difference between New Zealand KiwiSaver and Australian Superannuation.

1. What is Australian Super?

You can think of Australian Super as Australia's version of KiwiSaver for retirement, but they behave quite differently.

In Australia, Super contributions are tax-advantaged. For example, if you earn $100,000 and contribute $15,000 to your Super, your personal taxable income is reduced to $85,000, taxed at your marginal rate (currently 30%), while the $15,000 contribution is taxed at 15% within the Super account. This encourages Australians to save more for retirement.

2. Contribution

KiwiSaver: 3% contribution from the employee and 3% from the employer.
Australian Super: 12% contribution from the employer on top of your salary; employee contribution is optional.

3. Can you use it to buy your first home?

KiwiSaver: You must be a member for at least three years. You can withdraw your contributions, employer contributions, and government contributions, except for the $1,000 you contributed yourself.

Australia Super: You can use up to $50,000 of your contributions for a first home, with a maximum withdrawal of $15,000 per financial year. For example, if you contributed $20,000 in year 1, $15,000 in year 2, and $5,000 in year 3, you could withdraw $35,000 in total.

4. Can you use your KiwiSaver in Australia?

Some Australian Super funds accept KiwiSaver transfers, allowing you to use the funds for a first home purchase:

5. When can you withdraw Super?

KiwiSaver: Standard retirement age is 65 years old.

Australian Super: You can access your Super based on your preservation age, which depends on your date of birth:

Preservation Age Based on Date of Birth
Date of Birth	Preservation Age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59
From 1 July 1964	60

Kiwi to Oz

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