I spent nine years in Australia and returned to NZ. I then had the benefit of the 48 months tax transition in NZ. The expiry of the 48 months tax transition coincided with the option being available to me to bring my Australian superannuation funds to NZ. Accordingly, I transferred the funds to NZ in the month after the expiry of the tax transition.

I was given to understand that I might have to pay tax on forex gains, or claim a tax expense on forex losses - for such funds brought to NZ. Further, I was told that the calculation of the gain or loss was calculated as follows.

1. The day on which the tax transition expires (in my case 31 July) is a key date i.e., the exchange rate for AUD to NZD on that date establishes the value of the funds held overseas.

2. The actual value of funds converted to NZD after 31 July is subtracted from the value established on 31 July. If the value is more than the 31 July base, then it is a gain and tax is payable on the excess in NZ. If the value is less than the 31 July base, it is a loss and can be claimed in a NZ tax return.

My question - does anyone have any experience with this scenario. Further, is my understanding, as set out in 1 and 2 above, correct?

Thank you.