KiwiSaver & FHSS Explained: First Home Strategies for Kiwis in Australia

Buying your first home is a huge milestone and for Kiwis who’ve hopped across the ditch to South East QLD, it can feel a little daunting figuring out which rules apply. The good news? You don’t have to start from scratch.

If you’ve saved money in KiwiSaver or you’re earning income in Australia, you can use both your KiwiSaver and the First Home Super Saver Scheme (FHSS) to grow your first-home deposit. Understanding how these two options work and how to combine them can help you reach your savings goal much faster and fast track you to home ownership.

In this guide, we’ll break it down step-by-step, clear up the tricky bits, and share insider tips to help you buy smarter with the help of your KiwiSaver.

What Is KiwiSaver for First Home Buyers in Australia?

KiwiSaver is a retirement savings scheme in New Zealand. Under the Trans-Tasman Retirement Savings Portability Scheme, eligible Kiwis can transfer their full KiwiSaver balance to nominated Australian superannuation funds regulated by APRA.

Who Can Transfer KiwiSaver?

You must be living in Australia (or intend to make Australia your home).
Only entire KiwiSaver balances (all or nothing) can be transferred – partial transfers are not permitted.
The receiving super fund must be APRA-regulated and explicitly accept KiwiSaver transfers. (Not every Australian super fund does.)
Transferred amounts will be in Australian dollars, and will count as non-concessional (after-tax) contributions.

What Happens to Transferred KiwiSaver Money

The transferred KiwiSaver balance is kept separate (a “KiwiSaver component”) and governed by NZ rules for when it can be accessed (e.g. NZ preservation age) for retirement purposes. The Australian super component (earnings after transfer etc.) follow Australian rules.
Once transferred, the money may be eligible for release under Australia’s FHSS scheme under certain conditions.

Looking to use your KiwiSaver to buy your family home?

Using KiwiSaver & FHSS Combined in Australia

How can you combine KiwiSaver and FHSS for ultimate borrowing power?:

Once you’ve transferred your KiwiSaver into an Australian APRA fund that accepts it, that transferred amount (if it qualifies as a personal voluntary after-tax contribution) may count as an eligible contribution under FHSS.
That means your KiwiSaver savings can help go towards your home deposit in Australia, alongside any new contributions you make under FHSS.
However, not all of the transferred balance may qualify if parts are employer contributions, government contributions, or components not treated as “voluntary contributions” under FHSS rules. These need to be checked carefully.

We understand some of this can be a little bit hard to navigate on your own. That is why at Property Acquire we can help you tap into your KiwiSaver and FHSS! Let us help you optimise your borrowing power to help you get your first home in South East QLD!

Using KiwiSaver for a Home Deposit in Australia: Practical Steps

Here’s a step-by-step of how a Kiwi can use KiwiSaver for their home deposit when living in Australia:

Check super fund eligibility Find an APRA super fund that accepts KiwiSaver transfers. First Super is one example.
Transfer your full KiwiSaver balance Complete the paperwork (proof of immigration, an Australian address etc.). This may take several weeks.
Ensure contributions are eligible under FHSS If the transferred funds are treated as after-tax voluntary contributions, then they may qualify.
Make additional voluntary contributions if needed To maximise the FHSS cap (up to $15,000 p.a. and $50,000 total), you may need to add personal or salary sacrifice contributions.
Request FHSS determination via the ATO Before you sign a contract to buy, you must apply for the determination, which tells you how much you can release.
Sign purchase contract & request release Once you have the determination, you can request release of FHSS funds. Then you must sign the legal contract for your first home.
Use the funds for deposit The released amount (transferred KiwiSaver + eligible voluntary contributions + earnings) goes toward your house deposit. Also allow time for processing and transfer delays.

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Extra ‘Mindful’ Tips for KiwiSaver First Home Buyers in Australia

These tips will help you maximise the benefits and avoid pitfalls:

Check with your super fund early whether they accept KiwiSaver transfers, and whether they participate in FHSS.
Keep good records of contribution dates, amounts, whether after-tax or salary sacrifice. These matter for ATO eligibility.
Watch timing: transfer times, ATO determination time, and when contract signing must occur. Miss a deadline, and you may lose eligibility.
Understand tax implications:
- Transferred KiwiSaver is non-concessional, so it may count toward Australia’s after-tax contribution caps.
- FHSS withdrawal gives you associated earnings but may involve withholding tax/other tax obligations.
Plan contributions to spread across years, so you can use maximum allowable contributions under FHSS each year without triggering excess contribution penalties.
Seek financial advice especially if your situation is complex (e.g. you own property overseas, you have mixed super / KiwiSaver / employer contributions, or unusual residency/tax status).

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