Tax for Australian residents in a NZ QROPS zero rate PIE

 
 
Investors now more than ever are conscious of their after tax investment returns. So once a transfer has been made to a QROPS you want to ensure that your funds are growing with the least possible taxation.
 
To encourage foreign investment into New Zealand and develop a fund administration industry in New Zealand the government developed a tax regime that is favourable to overseas investors. This extends to Australian residents who transfer their pensions into New Zealand QROPS. Broadly, the is called the zero rate portfolio investment entity (PIE) regime. At its heart it allows Australian residents who transfer their UK pensions into specific schemes (known as zero rate PIE scheme) to enjoy tax-free growth in their investments.
 
 

Zero rate PIE schemes are only available to non-New Zealand residents

As an Australian resident you will accrue a significant tax advantage by transferring your UK pension into a zero rate PIE.  Where significant growth in the funds is expected then this can lead to large tax savings.
 
 

Not many NZ QROPS are zero rate PIE schemes

In order to become a zero rate PIE the New Zealand QROPS must be fully invested in offshore investments. Therefore, most New Zealand QROPS are not zero rate PIEs as they offer New Zealand based funds (like cash, NZ shares ect). The NZ QROPS that are zero rate PIEs tend to have structured their funds to be attractive to overseas residents. That is why for those servicing Australian residents their funds are usually denominated in Sterling and Australian dollar funds, with Australian and UK based fund managers.
 
 

Tax for Australians in standard NZ QROPS is 28% on growth

If you invest in a New Zealand QROPS that is not a zero rate PIE then you will pay 28% on the growth in your funds each year. What’s more this 28% can be on the currency revaluation of the funds if they are not denominated in New Zealand dollars. Therefore, there is more currency risk exposure in investing in a scheme that is not a zero-rate PIE.

NZ free phone:0800 102 599 / OZ Free Phone:1800 857 410 / Email:info@qropsnz.com

very stress free

Thank you Cambel for your help and guidance throughout this process in getting my pension transferred (very stress free for me). It is greatly appreciated and I would certainly recommend you and Charter Square to others who are interested in transferring their pension.

David R, New Zealand

You guys rock!

I just wanted to say a great big thank you to you and your team. You are all totally awesome. I received a cheque yesterday from the Prudential to apologise for the ‘recent inconvenience’ that I had experienced. Thank you for doing this for me. You guys rock!

Noelle B, New Zealand

professional, insightful

Charter Square were professional, insightful and a pleasure to work with. They rose to the challenge of consolidating my overseas pensions and bringing them home with minimum fuss for me and maximum effort on their part.

Jens H, New Zealand

thorough, professional and prompt

Very thorough, professional and prompt service from the team at Charter Square. Thanks for making the bewildering world of pension transfers super simple.

Jules T, New Zealand

Best party to deal with

Thank you kindly for keeping in touch with me. For now, I will not be moving my pension. I will however be keeping your details and referring back to you when I wish to pursue. You by far are the best party to deal with, no nonsense, professional and in my opinion genuine. I do sincerely thank you for your advice to date.

GE, New Zealand

Freedom

Securing the freedom to use savings that are actually ours to work with has been stressful in the extreme. While I never planned on giving up there were many times when the current (UK) holder made the whole process seem well beyond my determination and ability. It’s easy to look at the 36 month history of this claim with the benefit of hindsight, but the conclusion is that employing Charter Square in the first instance would have been wise had I been able to anticipate the red-tape that appears to have been deliberately created to stall access.

CP, Auckland
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