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You are responsible for calculating your AWA and making sure the information you provide is correct. i-Select can explain the Scheme Pays process, but we cannot calculate or confirm your personal tax position. You may wish to speak with a qualified New Zealand tax adviser. Our Assessable Withdrawal Amount Calculator may help you estimate the taxable portion of your transfer, but it does not replace personalised tax advice.
The Assessable Withdrawal Amount, or AWA, is the portion of your overseas pension transfer that is treated as taxable income in New Zealand. The amount will depend on your personal circumstances, including how long you have been a New Zealand tax resident.
No. Scheme Pays does not remove or reduce the tax that may apply. It simply changes how the tax is paid. The taxable portion of your transfer is known as your Assessable Withdrawal Amount.
Possibly. Some new or returning New Zealand tax residents may qualify for a temporary tax exemption. If your transfer is fully exempt, your AWA should be NZ$0 and no Scheme Pays tax will be deducted. You will still need to confirm your exempt status to us. Tax-residency and exemption rules can be complex, so you may wish to obtain tax advice.
Scheme Pays is an optional way to pay any New Zealand tax that applies to your overseas pension transfer. Instead of paying the tax from your personal savings, you can ask the Scheme to deduct it from your transferred pension funds and pay it directly to Inland Revenue.
When your transferred funds are received, we will ask you to choose one of the following: Scheme Pays The Scheme deducts tax from your transferred funds and pays it to Inland Revenue. Individual Pays No tax is deducted by the Scheme. You declare the AWA in your personal tax return and pay any tax due yourself. Exempt You believe your transfer is fully exempt from New Zealand tax and your AWA is NZ$0. i-Select cannot recommend which option is best for you.
Tax is deducted at a flat rate of 28% of your AWA, not automatically from the full value of your pension transfer. For example, if your AWA is NZ$50,000: NZ$50,000 × 28% = NZ$14,000 tax The NZ$14,000 would be deducted from your transferred funds and paid to Inland Revenue.
You must provide your AWA, personal information and tax-status election within 10 working days of the transfer. We will contact you when your transferred funds are received. As the timeframe is short, it may be helpful to arrange tax advice before your transfer arrives. If we do not receive the required information in time, you may be unable to use Scheme Pays and may need to declare and pay the tax yourself.
No. Once you have made a Scheme Pays election, it cannot be cancelled or changed. Please check your selection and AWA carefully before submitting your election. Contact us as soon as possible if you discover that any information you provided was incorrect.
Once we receive your completed election, we will: calculate the tax at 28% of the AWA you provided deduct the tax from your transferred funds report the required information to Inland Revenue pay the tax directly to Inland Revenue send you confirmation. When Scheme Pays has been applied correctly, the tax is treated as final and you do not include the AWA as income in your personal tax return. Scheme Pays also means the AWA should not affect Working for Families, FamilyBoost, student-loan obligations or child-support calculations.