Moving to Australia from New Zealand?
Get all information you need to make a successful and stress-free move across the ditch.
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 tax to the Australian Tax Department/Office 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:
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 types of income earned by individuals and businesses operating 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 to provide greater certainty and predictability for individuals and businesses who are active in both 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.
A Tax File Number (TFN) is the Australian equivalent of the New Zealand IRD number. You do not need to have a TFN to work and pay Australian tax, however, you will be charged a higher tax rate. You can start working without 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 may be able to 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 through to the 30th of June.
You should apply for a Tax File Number Aus as soon as you arrive in Australia. You are not able to apply from New Zealand.
You can apply for a tax file number online if you meet these three conditions:
You can apply through the Australia Taxation Office (ATO) by completing the online form on the ATO website, print the summary and then book an interview at a participating Australia Post retail outlet. You will need to take your printed summary and proof of identity documents to the interview.
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.
If you already have a TFN and don’t remember the number, you can find it online in ATO online services via your myGov account: https://my.gov.au/.
If you don’t have a myGov account, you can usually find your TFN on:
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.
New Zealand citizens are treated as residents for tax purposes once they complete a stay of six consecutive months in Australia (183 days).
Please find below a table containing the Australian individual income tax rates.
| Taxable income | Tax on this income |
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 19c for each $1 over $18,200 |
| $45,001 – $120,000 | $5,092 plus 32.5 cents for each $1 over $45,000 |
| $120,001 – $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
The above rates do not include the Medicare levy of 2%. You can work out 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. TaxBack.com can help you with this.
| Taxable income | Tax on this income |
| 0 – $120,000 | 32.5 cents for each $1 |
| $120,001 – $180,000 | $39,000 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $61,200 plus 45 cents for each $1 over $180,000 |
Once you have your TFN you will pay the same tax rate as an Australian resident or citizen.
The standards the ATO use 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.
To understand your tax situation you first need to work out if you are an Australian or foreign resident for tax purposes. You can do that here using the ATO’s ‘Are you a resident?‘ tool.
You do have the option to be an Australian “temporary resident” for tax purposes.
There can be some benefits for New Zealand citizens living in Australia to be considered temporary residents for tax purposes. This is because, as temporary residents, they may be eligible for certain tax concessions and exemptions, including:
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 with a qualified tax professional who can provide tailored advice based on your specific situation.
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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 the 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:
The main reason people submit a tax return is 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 – https://www.ato.gov.au/Individuals/myTax/.
For more info, read my post Filing your Australia Tax Return.
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. Thus you can guarantee yourself a simple and easy process that will involve as many tax deductions as possible and a larger tax refund amount in the end.
You can find accountants in your area by searching online. Make sure you check the tax and BAS agent register before you go ahead with any service.
If you are planning on starting your own business and working as a sole trader or contractor, or sub-contractor, you need to 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 such you must have obtained a Tax File Number first.
You can apply for ABN by registering directly with the Australian Government – https://www.abr.gov.au/business-super-funds-charities/applying-abn.
Taxback.com can also help with this matter to ensure a trouble-free application. Check out more information on their webpage – ABN application. Service fee applies.
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.
The below posts might interest you:
If you’ve read the above content and the answer to your question isn’t there, please write a comment below and I’ll research the answer for you. Please note, if the answer to your question is in the content above, I will not reply. Sorry, I just get too many questions these days and I can’t keep up.
If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
Hi… I’m JJ Smith.
I’m the creator and editor of Moving to Australia and have been for 15 years! I know everything there is to know about New Zealanders moving their families and life to Australia. Either from first hand experiences and research or through the questions from visitors to this website… and I’m here to help!
I love helping people via Moving to Australia.
Providing the answers to questions we all ask when deciding whether to make the move from New Zealand to Australia. Even giving individual specific advice where needed.
I have learned a lot over the last 15 years from personal experience and through interacting with visitors. This is my job, making sure the information here is comprehensive and up to date.
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Debbie
October 18, 2023 at 2:57 pmHi, my husband and I lived in Australia for 4 years and then returned to nz, if we return to live in Australia can we still use the same tax number we had when we were living there or do we need to apply for new ones when we arrive, thank you so much for this helpful site.
JJ Smith
October 26, 2023 at 12:18 pmHi Debbie,
Thanks for your comment.
Yes, you use the same tax file number (TFN) when you return.
Your TFN is: a unique number (usually 9 digits) an important part of your identity. Yours for life – you keep your TFN even if you change jobs or name, move interstate or go overseas.
Thanks
Amar
October 6, 2023 at 3:21 pmHi there,
I am planning to move to Australia from New Zealand. I want to discuss the options for NZ Citizens to buy a property in Australia specifically in Sydney.
I have existing properties in NZ and am not disposing of any of my properties here but I am looking forward to investing in a house in Australia for my living.
Is it possible for you to arrange a call via WhatsApp.
Also, please let me know if there is any fees for this.
Kind Regards,
Amar
JJ Smith
October 12, 2023 at 5:36 pmHi Amar,
Unfortunately I am not a financial adviser and cannot advise you sorry.
If you are looking for a mortgage, I recommend booking a consultation with UNO through their questionnaire in this post: https://www.movingtoaustralia.co.nz/australian-mortgage/. UNO understand a New Zealanders circumstances when they move to Australia, e.g. SCV, NZ equity and Australia government grants. They also have an amazing technology when it comes to home loans.
If you are wanting tax advice, I recommend contacting Beyond Accountancy. Check out this post of theirs, you will see they also understand having properties in NZ and living in Australia: https://beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
Here is some of my posts that will be of interest if you haven’t read them already:
– Buying a house in Australia – https://www.movingtoaustralia.co.nz/buying-a-house-in-australia/
– Australian Mortgage – https://www.movingtoaustralia.co.nz/australian-mortgage/
– Foreign Exchange/Money Transfer – https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/
– KiwiSaver for your Home Deposit – https://www.movingtoaustralia.co.nz/kiwisaver-for-your-home-deposit/
– Australia’s First Home Owners Grant – https://www.movingtoaustralia.co.nz/australias-first-home-owners-grant/
Hope the above helps.
MJ
June 26, 2023 at 9:04 amHi,
I’ll be moving to Australia from New Zealand to live there permanently yet it won’t let me sign up for Australian TFN. But I’m assuming I need a tax number if I’m wanting to get a job correct? Am I using to wrong application? I’m very confused. Could you send me a link on where I can apply for Australian TFN thanks!
JJ Smith
June 26, 2023 at 10:20 amHi MJ,
As stated in the Australian Tax post, you cannot apply for a TFN from New Zealand.
After you have arrived you can apply and here are the instructions: https://www.movingtoaustralia.co.nz/australian-tax/#howtoapplyforTFN.
Good luck with your move.
Nicole
June 16, 2023 at 7:55 pmHi JJ,
I hope this message finds you well.
I’m writing to you today because I’m moving to Australia next month (permanently) with a permanent job offer. My current employer in New Zealand wants me to continue working for them for around 10 hours a week. They have given me the following options:
1. Work as a part-time employee and they will pay my PAYE to the IRD.
2. Work as a contractor where I will invoice them for the hours I work at our agreed rate and I will be responsible for managing my own taxes.
I’ve read your blog and found it to be very informative. I was wondering if you have any experience with this situation? If so, do you have any advice on which option is the best for me?
Thank you for your time and consideration.
JJ Smith
June 19, 2023 at 11:23 amHi Nicole,
Unfortunately, I’m not an accountant and don’t know the full implications of both options.
What I do know… you will not have to pay tax twice, because of the Double Tax Treaty (DTT), which ensures that you are not unfairly taxed in either country due to cross-border operations.
I recommend you call your accountant or the IRD and ask them.
Personally, I would get them to pay the PAYE and deal with the tax issues when you lodge your tax returns (NZ and Australia). Either way, you are probably going to need an accountant to help you.
Hope the above helped.
Ellen Dunster
June 7, 2023 at 1:39 pmHi, your site is the best I’ve found!
My partner is self employed in NZ and had been offered a one month contract in Melbourne for an Australian company. Does he need to do anything re tax in Australia or does he just submit as part of his income in NZ (ie same as he does for his NZ income). Also does he have to pay Medicare? Assume he will not get super? Thank you.
JJ Smith
June 19, 2023 at 2:20 pmHi Ellen,
Unfortunately, I am not an account, so can’t really advise you.
As he will be working in Australia for less than 6 months, I don’t think he needs to file an Australian tax return.
However, I recommend that he talks to his accountant about his obligations and the IRD if he doesn’t have an accountant.
I don’t know if he will still have to pay Medicare and super sorry. I think these are subtracted automatically.
I hope the above helps.
Misael Jr Diputado
May 15, 2023 at 3:07 pmHi JJ,
I am a New Zealand citizen and currently in Sydney. I work for a NZ company which allows me to work remotely here in Sydney for as long as I want. Do I have tax obligations in Australia?
Thanks,
Misael
JJ Smith
May 16, 2023 at 11:22 amHi Misael,
Thanks for your comment.
I don’t know a lot about working remotely, but you can choose as an NZ citizen to be an Australian resident for tax purposes or not. I recommend you talk to your accountant about this. Here is some information on being a temporary resident for tax purposes: https://beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
NZ and Australia also have a tax treaty so that you will not pay double tax on your income. Here is some info: https://nztaxprop.co.nz/tax-services/double-tax-treaty/.
I recommend you talk to your account about what is the best option for you.
Please feel free to email me back any further questions you have.
Good luck with your move.
Ainslee
February 19, 2023 at 11:57 pmHi I was wondering if I could confirm a few things.
I’m planning to move to Australia from nz for around 3 months for work during my gap year.
Even though I’m spending less then 6 months there as soon as I receive my TFN I will be treated as an Australian resident for tax reasons correct?
And if I only start working after I receive my TFN number since I’ll be earning in the lowest tax bracket and therefore not be taxed anything, will I still have to file a tax return?
If I do have to file a tax return will I have to include work that I did while in nz or just include any income earned while working in Australia?
Final bit:
Do I have to let IRD know that I plan to move temporarily to auz? I have a student loan so I’m curious as to what will happen in regards to that while I’m in auz.
Thank you for your help this is bit confusing.
JJ Smith
February 20, 2023 at 10:14 amHi Ainslee,
Thank you for your comment.
It is a bit confusing since you are only going for a short period. You fall into the backpacker category, rather than resident.
You are considered a resident from a fiscal point of view after living 6 months in the same place in Australia (not necessarily to the same address, but in the same geographical area or in the same city, Sydney and the surrounding area for example) provided that you are able to prove it. To declare you as a resident from a taxes point of view, residents are taxed less than non-residents, the first level of taxation for residents is $18,200.
This means that if you earn less than the $18,200 threshold and have been in the same place for 6 months, you will get all of your tax refunded.
Have a read of this post, which is more applicable to you since you are staying in Australia for less than six months: https://www.australia-backpackersguide.com/how-to-claim-tax-back-australia/.
I recommend getting a TFN so that you don’t have to pay the higher tax rate. Then when you leave complete a tax return through the ATO website and hopefully you will get your tax back. Remember to keep transport receipts and any other expenses you incur to do with work, e.g. special shoes.
Regarding your student loan, as you are not going overseas for more than 6 months, you don’t have to worry about your student loan because it will remain interest-free.
If you’ll earn a New Zealand salary or wages while you’re away, you’ll still be required to have student loan repayments deducted from this income.
If you earn any other income from New Zealand and/or overseas income while you’re away, you’ll need to let us know after the end of the tax year (31 March). This is because you’re still a New Zealand- based borrower and your repayments are based on your worldwide income.
If you have any other repayment obligations due while you’re away or would like to make voluntary repayments, there are a number of ways you can make a payment.
You can read more about your NZ student loan here: https://www.movingtoaustralia.co.nz/student-loans/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Ainslee
February 20, 2023 at 10:41 amSorry just to clarify… If I were to get a TFN number before staying there for 6 months will I then start paying less tax eg if earning under 18,000 ish no tax, as soon as i get the TFN number?
Or do I continue to pay higher tax rates even if I require a TFN during the first 6 months?
JJ Smith
February 20, 2023 at 11:36 amPlease note, I am not an accountant and can only advise from what I’ve read online.
A TFN will drop the amount of tax your employer deducts, so you will get more in your hand every week.
Then if you earn less than $18,000 you should get the tax you paid back when you lodge a tax return.
Hope the above helps.
Mandy
November 3, 2022 at 10:19 pmYour site has been so informative, thank you!
I am a NZ Citizen. I intend to find a job in Australia and stay for 2-3 years.
My question for you: What is the best circumstance for me if I want to avoid AOT from taxing me for capital gains tax if I sell my investment house in NZ.
1. Resident for tax purposes –
a. .if I stay in Australia for 2-3 years, am I considered a Resident for tax purposes?
b. If I want to return to NZ to sell my properties, is there a timeframe for how long I have to stay for, to avoid AOT from taxing me for capital gains? Ie. does my residency in AU reset?
2. Non-resident for tax purposes – Can I continue being a non-resident even if I intend to stay for 2-3 years?
Looking forward to your reply.
Mandy
JJ Smith
November 4, 2022 at 11:35 amHi Mandy,
Thank you for your comment.
I am not an accountant so can only advise from the information I can find online.
If you sell your investment property while living in Australia then you will be liable for CGT. If you want until you return to NZ, then you will not as your CSV expires as soon as you leave Australia.
What you also need to consider is your rental income while living in Australia. This is where being a temporary resident would benefit you, as temporary residents are generally exempt from tax on their overseas income.
Contrast this with permanent residents or Australian citizens. As long as we remain residents for tax purposes we have to pay tax on any source of income, foreign or domestic, whereas a temporary resident living and working in Australia generally will only need to pay tax on Australian income and employment income overseas.
Any bank interest, share dividends, rent from a property and capital gains are usually disregarded (that is, tax-free).
As long as a Kiwi remains a “temporary resident” for tax purposes, they could have 5 investment properties, all earning rent and making capital gains. The Australian taxman can’t touch a cent.
What you need to do is make sure you get an accountant that understands the temporary resident rules and can apply them to you. I know Beyond Accountancy do, because of this blog post NZ taxes: something every Kiwi in Australia needs to know (https://beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/).
Please feel free to email me back any further questions you have.
Good luck with your move.
Evan
June 7, 2023 at 12:12 amDear JJ Smith,
Outstanding website. Thank you. So much great information.
I am replying to this particular thread with but one specific question!
I’m a NZer having been offered work in Aus but as an independent contractor, requiring I set-up an ABN as a sole trader in Aus.
From what I can gather, once I’ve set-up the ABN and sole trader status, this will impact tax on my rental returns from NZ (i’ll need to pay additional to the Aussie tax man), potentially leading to a change of tax from temporary to permanent?
Have you heard of others in the same boat?
Kindest
Evan
JJ Smith
June 19, 2023 at 2:01 pmHi Evan,
Thanks for your comment and compliment.
Unfortunately, I’m not an accountant, but I do agree with you that once you have an ABN you will be an Australian permanent resident for tax purposes and they will want a slice of your rental returns.
I recommend you contact Beyond Accountancy, as they appear to have the best knowledge of tax rules for New Zealand citizens living in Australia and they might know a loophole you can use: https://beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
Please let me know if you learn anything that I can share with other visitors.
Good luck!