Australian tax file number, tax rates, tax calculator, and finding a tax agent/accountant.

The Australian tax system works pretty similarly to New Zealand. The Australian Tax Office/Department is the equivalent of the IRD in New Zealand.

Your employer will pay the Australian Tax Department/Office tax on your behalf. If you are self-employed, you will need to file your own tax returns, so you will need to get an Australian tax accountant to help you file everything correctly.

On this page, you will find the following helpful information:

• Double Tax Treaty between NZ and Australia
• Australian Tax File Number
• How to apply for a TFN
• How long does it take to get an Australian tax file number?
• Already have a TFN and need to find the number?
• Starting work and paying tax
• As a New Zealander, will you have to pay higher tax?
• Australian temporary resident for tax purposes
• Work out your tax residency
• Australian Income Tax Calculator
• Tax Return / Tax Refund
• Why use an Australian Tax Agent/Accountant
• Obtaining an ABN
• Inform the IRD that you are Moving to Australia 

Double Tax Treaty between NZ and Australia

The Double Tax Treaty (DTT) between New Zealand and Australia is an agreement signed by both countries to avoid double taxation of income earned by their respective residents.

The DTT outlines the rules for determining which country has the right to tax specific income earned by individuals and businesses in both countries. The DTT aims to eliminate double taxation, reduce the tax barrier to cross-border trade and investment, and promote economic activity between the two countries. It also includes provisions for the exchange of information to assist in the prevention of tax avoidance and evasion.

The DTT covers a range of areas, including income from employment, investments, royalties, and pensions. The agreement also includes provisions for resolving disputes that may arise between the tax authorities of the two countries.

Overall, the DTT helps provide greater certainty and predictability for individuals and businesses active in New Zealand and Australia. It helps to ensure that they are not unfairly taxed in either country due to their cross-border operations.

You can read more on the Inland Revenue website on Double tax agreements (DTAs) or speak to your accountant. 

Australian Tax File Number

A Tax File Number (TFN) is the Australian equivalent of the New Zealand IRD number. You do not need a TFN to work and pay Australian tax. However, you will be charged a higher tax rate. You can start working without a TFN and inform your employer that you have applied for one, but they may still use the higher tax rate until your TFN comes through. The good news is that you can claim the overpaid tax; you can find more info about tax refunds below.

A TFN will get you in line with the PAYG (pay as you go) earn scheme, which means that your Australian employer will withhold and report tax under your TFN. Same as NZ.

The Australian tax year runs from the 1st of July to the 30th of June.

You should apply for a Tax File Number as soon as you arrive in Australia. You cannot apply from New Zealand.

You can apply for a tax file number online if you meet these three conditions:

1. You are a foreign passport holder, permanent migrant or temporary visitor.
2. You are already in Australia.
3. Your visa is one of the following:
   • a permanent migrant visa
   • a visa with work rights
   • an overseas student visa
   • a visa allowing you to stay in Australia indefinitely (including New Zealanders automatically granted a visa on arrival).

Proof of identity documents

If you are 16 years old or older, you need to provide three current documents, one of which must be a primary document, or two current documents, one of which must be a primary document, if you are under 16 years old.

Primary documents:

• Australian full birth certificate (Extracts and Commemorative Certificates are not acceptable)
• Australian passport
• Australian citizenship certificate or Extract from Register of Citizenship by Descent
• Foreign passport

Secondary documents:

• Medicare card
• An account statement from an Australian bank, credit union, or building society less than one-year-old or an ATM card. Your name and address on the account statement should match the details you provide on your online form (transaction lists printed off the internet and credit card statements are not acceptable).
• Australian firearm licence with your signature and/or photo matching the details you provide on your online form
• Student identification card (tertiary or secondary) with your photo issued from an Australian government-accredited education authority
• One of the following cards with your photo and signature. Any address on the card must match the details provided on the online form:
  • Australian driver’s licence
  • Australian learner’s permit
  • State or territory government-issued proof of age card
  • State or territory government-issued photo card

If you are under 16, secondary documents can include one of the following, which must be less than one year old and issued by an Australian government-accredited education authority:

• Secondary school examination certificate
• Record of achievement
• Examination report

As you will see from the above list, it is hard to supply the two secondary documents you need as a recently arrived resident.

I have bolded the easy ones: foreign passport (primary doc) and Australia Bank statement. The next easiest option is to apply for an Australian driver’s licence. The rules are different state by state, but for most states, if you have an NZ full licence, you can visit a centre and apply for an Australian licence without doing any tests or assessments. You only need your foreign passport and an Australian bank statement as ID.

For more information, read my Driving and License in Australia Post.

You can also apply for a Medicare card, and if you can prove you have moved to Australia permanently, this is another excellent option. For more information, read my Medicare Australia post.

How long does it take to get an Australian tax file number?

You should receive your TFN within 28-30 days. The ATO will send your TFN to the Australian address you use on your application.

Please note you can start working without a TFN, but you might get taxed a higher amount until it comes through.

Once you have received your TFN, it’s important that you keep it and all your personal information secure to prevent identity theft.

 

Already have a TFN and need to find the number?

If you already have a TFN and don’t remember the number, you can find it in ATO online services via your myGov account.

If you don’t have a myGov account, you can usually find your TFN on:

• your income tax notice of assessment, if you have lodged a tax return
• letters you have received from the ATO, such as a statement of account
• a payment summary or income statement (provided by your employer)
• your superannuation account statement.

If you use a registered tax agent/accountant, you can ask them for your TFN. If you still can’t find your TFN after checking these options, phone the ATO.

Starting work and paying tax

New Zealand citizens are treated as residents for tax purposes once they have stayed in Australia for six consecutive months (183 days). You are able to be a

Please find below a table containing the Australian individual income tax rates.

Current resident individual tax rates 2024-2025

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $45,000	16c for each $1 over $18,200
$45,001 – $135,000	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,288 plus 37c for each $1 over $135,000
$190,001 and over	$51,638 plus 45c for each $1 over $190,000

The above rates do not include the 2% Medicare levy. You can calculate your Medicare levy using the calculator on the ATO website.

If you do not stay in Australia for six months (183 days), you will be treated as a foreign resident for tax purposes. This means that you are not allowed to use the tax-free threshold in your return (earn under $18,200), and you will be charged the starting tax rate of 32.5%. You would be eligible to claim a tax refund only if your Australian employer withholds more than 32.5% in tax, and you will get the difference, meaning only the overpaid amount of tax.

Foreign resident tax rates 2024-2025

Use these tax rates if you are an individual and were a foreign resident for tax purposes for the full year.

Foreign residents are not required to pay the Medicare levy.

Taxable income	Tax on this income
0 – $135,000	30c for each $1
$135,001 – $190,000	$40,500 plus 37c for each $1 over $135,000
$190,001 and over	$60,850 plus 45c for each $1 over $190,000

 

As a New Zealander, will you have to pay higher taxes?

Once you have your TFN, you will pay the same tax rate as an Australian resident or citizen.

The standards the ATO uses to determine your tax residency are not the same as those used by the Department of Immigration and Border Protection – for example, you could be an Australian resident for tax purposes even if you’re not an Australian citizen or permanent resident (read more below).

To understand your tax situation, you first need to determine whether you are an Australian or foreign resident for tax purposes. You can do that here using the ATO’s ‘Are you a resident?‘ tool. 

Australian temporary resident for tax purposes

There are two types of residency in Australia: your ‘country residency’ and your ‘tax residency’. The ATO doesn’t use the same rules as the Department of Home Affairs (immigration). This means you:

• can be an Australian resident for tax purposes without being an Australian citizen or permanent resident
• may have a visa to enter Australia (New Zealander on an SCV) but are not an Australian resident for tax purposes.

For a summary of key information about residency status, download Residency for tax purposes (PDF, 296KB).

There can be some benefits for New Zealand citizens living in Australia who are considered temporary residents for tax purposes. This is because, as temporary residents, they may be eligible for certain tax concessions and exemptions, including:

1. Lower tax rates on their Australian income: Temporary residents are only required to pay tax on their Australian-sourced income, and their tax rate may be lower than that of permanent residents.
2. Exemption from capital gains tax on their foreign assets: Temporary residents are generally exempt from paying capital gains tax on assets they own outside of Australia.
3. Exemption from the Medicare Levy: Temporary residents are exempt from paying the Medicare Levy, which is a tax on most Australian taxpayers that helps fund the public health system.

You can read more about this in Beyond Accountancy’s post: NZ taxes: something every Kiwi in Australia needs to know.

However, it’s important to note that these benefits depend on individual circumstances and may not apply to all temporary residents. It’s always best to consult a qualified tax professional who can provide tailored advice based on your situation.

 

Work out your tax residency

You can use the ATO’s residency tests to work out if you’re:

• an Australian resident for tax purposes – you must declare on your tax return all income you’ve earned in Australia and overseas,
• if you’re a foreign or temporary resident for tax purposes – declare any income earned in Australia; foreign income and capital gains don’t have to be declared.

Read more in the ATO’s article ‘Your tax residency: If you are coming to Australia or going overseas, you may need to work out your residency for tax purposes‘. 

Australian Income Tax Calculator

If you want to work out how much Australian income tax you should be paying, you can use the simple tax calculator on the ATO website.

Their calculator will only work out your tax for income years 2013–14 to 2023–24. This amount is the tax on taxable income before you consider tax offsets.

Which tax rates apply?

The individual income tax rates will depend on the income year you select and your residency status for income tax purposes during that income year.

Foreign residents pay tax at a higher rate and can’t claim the tax-free threshold. Part-year residents can usually claim a part-year tax-free threshold.

What you will need to use the calculator

• Your taxable income for the full income year.
• Your residency status for tax purposes in the specific income year.

You can use the income tax estimator to get a detailed estimate of your tax refund or debt. 

Tax Return / Tax Refund

The Australian financial year runs from 1 July until 30 June each year. Individuals have until 31 October to lodge tax returns on their own. If you use a tax agent, you can secure an extended deadline.

New Zealand citizens are not required to lodge a tax return if they have not commenced paid employment or stayed in Australia for less than six months and their only source of Australian income was bank interest, dividends, or royalties (from which non-resident withholding tax has been correctly withheld).

You must lodge a tax return if any of the following apply:

• tax was deducted from any payments (such as wages) made to you during the financial year
• you are an Australian resident, and your taxable income was more than the tax-free threshold
• you are a foreign resident, and you earned more than $1 in Australia during the financial year
• you are leaving Australia permanently or for more than one financial year
• you wish to claim any tax deductions

People submit a tax return mainly to claim overpaid tax and get a tax refund.

If your finances are straightforward (for example, your only income is from one employer, and you have few or no deductions to claim), try doing it yourself online via myTax, which is similar to MyIR with the IRD. Find here instructions to help you complete your tax return using myTax.

For more information, read my filing for your Australia Tax Return post.

Why use a Tax Agent/Accountant

Lodging a tax return can be daunting if you are not a professional. To ensure maximum legal refund and compliance with the Australian Authorities, you should use an Australian Tax Agent/Accountant.

You can find accountants in your area by searching online. Before you proceed with any service, make sure you check the tax and BAS agent register.

Obtaining an Australian Business Number (ABN)

If you plan to start your own business and work as a sole trader contractor or sub-contractor, you must apply for an Australian Business Number or ABN. Same as you would apply for a New Zealand Business Number (NZBN) in NZ.

ABN is a unique 11-digit number that identifies your business or organisation to the government and community.

To apply for an ABN you must have obtained a Tax File Number first.

You can apply for ABN by registering directly with the Australian Government, applying for an ABN. 

Inform the IRD that you are Moving to Australia

New Zealand tax residence questionnaire IR886

The IR886 form tells the IRD you are leaving or have left New Zealand so they can tell you your tax residence status and if you have any further New Zealand tax obligations. It also includes the IR597 form you can use to elect someone in New Zealand to act on your behalf.

Also, inform the IRD of your new address in Australia when you have one. It is easiest to do this online. Click here to register for the IRD’s online service, which means you can easily update your address while overseas and continue to be informed about things like student loan repayments or other tax obligations you may have.

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• Everything Money
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• Australian Mortgage

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