Withholding tax depends on your residency status
A standard RRSP withdrawal by a non-resident of Canada carries 25% withholding tax. If you're genuinely an Australian tax resident at the time of withdrawal, the Canada–Australia tax treaty can reduce that to 15% — but this depends on your residency status being clearly established, not assumed. Getting the timing and documentation right here has a direct, sizeable effect on how much you actually receive.
Withdraw now, or draw it down over time?
Taking the whole RRSP out in one go isn't the only option — drawing it down gradually in retirement is a genuine alternative, and which is better depends on your broader financial picture, not just the withholding rate in isolation.
Corpus versus earnings
Australia treats the corpus (your own contributions into the RRSP) differently from the earnings (growth on top of that). This split affects what's actually taxable on the Australian side once the money arrives, and it's a calculation worth having someone actually run for your specific account rather than estimating.
Currency timing
Like any cross-border transfer, the CAD/AUD exchange rate at the time of transfer affects the real value received — timing a transfer around currency movement is a legitimate part of the conversation, not an afterthought.
See exactly where you stand
Enter your actual figures — RRSP value and the date you became (or will become) an Australian tax resident — and get a reading computed against this year's real contribution caps. Free, no obligation, about two minutes.
Start your free Canada reading →Common questions
How do I get the reduced 15% withholding rate instead of 25%?
You generally need to be a genuine Australian tax resident at the time of withdrawal, with that residency status clearly established under the Canada–Australia tax treaty — this is worth confirming with a planner before you withdraw, not after.
Is it better to leave the RRSP in Canada and draw it down over time?
It can be, depending on your broader financial picture — a lump-sum withdrawal isn't automatically the right call just because it's the simplest option.
What's the difference between corpus and earnings, and why does it matter?
Corpus is your own contributions; earnings is the growth on top. Australia can treat these differently for tax purposes once the funds arrive, which affects the actual amount you keep.