25%, or 15% under the tax treaty
A standard RRSP withdrawal by a non-resident of Canada is subject to 25% withholding tax. Under the Canada–Australia tax treaty, that can be reduced to 15% if you're genuinely an Australian tax resident at the time of withdrawal. The word "genuinely" matters — this depends on your residency status being properly established and documented, not just assumed because you've physically moved.
Timing the withdrawal around your residency status
Because the rate depends on your status at the moment of withdrawal, the sequencing matters: withdrawing before your Australian residency is clearly established could mean paying the higher 25% rate unnecessarily. This is worth confirming properly before you initiate anything, not after the withholding has already been applied.
Lump sum now, or drawdown over time?
Withdrawing the entire RRSP in one transaction isn't the only option. Drawing it down gradually in retirement is a genuine alternative with different tax implications each year, depending on your total income in each of those years. Which approach suits you depends on your broader financial picture, not the withholding rate in isolation.
Corpus versus earnings on the Australian side
Once funds arrive in Australia, the split between your own contributions (the "corpus") and the investment growth on top (the "earnings") can be treated differently for Australian tax purposes. Understanding this split for your specific account — rather than treating the whole amount as one lump — is part of getting an accurate picture of what you'll actually keep.
Currency timing
As with any cross-border transfer, the CAD/AUD exchange rate at the time of transfer affects the real value received. This is a separate lever from the tax questions above, worth considering on its own terms rather than folding into the same decision.
See this against your own numbers
Enter your RRSP value and residency date to see this year's actual contribution cap headroom for your situation.
See your reading →