Update to cross-reference: KiwiSaver trans-Tasman portability scheme

Submission

(Matter raised by officials)

Section 189(5) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 introduced the new trans-Tasman portability scheme for KiwiSaver. The scheme went live on 1 July 2013, following the completion of the necessary legislative processes in New Zealand and Australia.

Under the portability scheme, a KiwiSaver member who permanently migrates to Australia can transfer all of their KiwiSaver funds, including any KiwiSaver member tax credits (MTCs), to an Australian complying superannuation scheme.

Clause 17 of Schedule 1 of the KiwiSaver Act 2006 provides that before any MTCs can be withdrawn from KiwiSaver on retirement, serious illness or death, the member (or their personal representatives) must provide a statutory declaration confirming their eligibility for these MTCs. Any MTCs that were incorrectly claimed are refunded to the Crown.

The trans-Tasman transfer rules allow MTCs to be taken to Australia. So a statutory declaration confirming eligibility/entitlement should be provided, for consistency with the other MTC withdrawal rules.

Comment

The reference at clause 17 should be updated to include transfers under the trans-Tasman portability rules.

Recommendation

That the submission be accepted.