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:
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.
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:
You can apply through the Australia Taxation Office (ATO) by completing the online form on the ATO website, printing the summary and then booking 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.
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:
Secondary documents:
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:
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.
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 in ATO online services via your myGov account.
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 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.
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.
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 |
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.
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:
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:
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.
You can use the ATO’s residency tests to work out if you’re:
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‘.
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.
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.
You can use the income tax estimator to get a detailed estimate of your tax refund or debt.
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:
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.
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.
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.
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.
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!
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Bruce Hurst
April 4, 2025 at 12:16 pmI am a NZ citizen permanently living in Australia from October, 2024. I have (and continue) to get NZ based income from a managed investment. My NZ Super payments have just ended as the 26 weeks are up. I do not receive AU Age Pension as I have not applied yet (likely to be a part pension on their asset/income test). I still have a NZ tax registration and now have an AU TFN. My NZ tax year is 31 March and for Australia it is 31 July. So for 6 months I lived and earned income in NZ and for 9 months I will have been permanently residing in Oz for their tax year. Question: Will I still need to file a NZ tax return (due from now) and if so do I apportion my income earned based on my 6 months residency in NZ before I moved to Australia? I know you do not provide financial/accounting advice but you may have come across this before and have some insights to help with this query. Love your site JJ. It has been so helpful to me on the move to the Land of OZ. My kind regards.
JJ Smith
April 8, 2025 at 1:43 pmHi Bruce,
Thanks for your comment and compliment. It actually means a lot to me
Please note I am not a financial adviser and only advise from information I have been able to find online (which you know).
You need to complete an NZ individual income tax return at the end of the tax year if you received more than $200 (before tax) in income that they have not been told about, even if this was only for part of the tax year.
Your Australia tax return is a different story. You will need to file an Australian tax return, tax year ends 30 June. However, you would have read that you have the option to be a Australian temporary resident for tax purposes. This is something I highly recommend you consider because you earn NZ based income.
Unfortunately the specialist accountant I was referring visitors to has had to stop working for health reasons. I’m currently trying to find a new accountant that understands the rules for NZ citizens living in Australia and in particular being an Australian temporary resident for tax purposes. I will forward you their details when I find them.
Regarding the Australian super, it’s time you apply. It was the right choice leaving it until now, when your 26 weeks was up, otherwise the IRD might have sent you a bill.
Get the following documents ready to submit with your application to Services Australia (https://www.servicesaustralia.gov.au/how-to-claim-age-pension?context=22526). Documents that show:
– your age
– your bank account details
– your tax file number (TFN)
– your Australian residence status, unless you’re an Australian citizen who was born in Australia (https://immi.homeaffairs.gov.au/visas/permanent-resident/evidence-of-residency-status)
– if you’re a member of a couple
– your income and assets.
You can read more about the documents needed on the Services Australia, supporting documents page, where they give you examples of each (https://www.servicesaustralia.gov.au/supporting-documents-for-age-pension?context=22526).
I hope the above helps.
Bruce
April 8, 2025 at 4:05 pmThank you JJ. Your comments are very helpful and much appreciated. I would love to hear from you if you find another Accountant who has a good handle on the tax issues for Kiwis moving permanently/temporary to Australia.
Cheers and regards,
Bruce
Nba
November 14, 2024 at 6:25 pmHi JJ,
I worked as an Independent IT Contractor in NZ for 6 months and moved to Australia and working as a Sole Trader in IT. I have couple investment properties in New Zealand generating rental income. I want some help with my taxation, could you please recommend any Tax agent either in Australia or New Zealand who understand both countries taxation.
JJ Smith
November 19, 2024 at 2:32 pmHi Nba,
Thank you for your comment.
I recommend you contact Craig at Clear Picture Accounting. He understands both Australia and NZ taxation systems and can advise you on your individual circumstances.
I’ll email you Craig’s details now.
Thanks
David Shi
October 15, 2024 at 12:51 amHi There!
I’m about to file my personal australian tax return and I have a few questions:
1) If I’ve been in Australia for more than 6 months, would I be considered a tax resident?
2) If so, would I need to declare any income in nz (e.g dividends and interest)?
3) Would I have to also declare my Australian income, since I’ve been working and receiving a salary here in Australia? I’ve left NZ since October last year and already filed my tax return, so I may need to amend it.
Thank you!
JJ Smith
October 22, 2024 at 12:27 pmHi David,
Thank you for your comment. Sorry for the delay in replying, I’ve been on holiday with my family.
Unfortunately, I’m not an accountant and can only advise you from information I have been able to find online.
It sounds like you are gong to have to amend your Australian tax return ether way, since you did not declare your NZ income.
Therefore you are gong to have to work out if you are a Australian resident or temporary resident for tax purposes. From the information you have given me, you could be either, but I don’t know what that decision will cost you.
Here is some information that will help you to understand foreign and temporary residents: https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/foreign-and-temporary-residents.
And here is a resource from the ATO to help you work out your tax residency: https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency.
I do recommend you get help from an Australian accountant with temporary resident experience. Sorry I don’t have anyone I can recommend.
Hope the above helps.
Louis
September 23, 2024 at 1:43 pmHi there JJ.
I am an NZ citizen, about to move to AUS. I have a mortgage (only 5 years old), planning to rent and keep as an investment. The plan is to move indefinitely.
Is there a way to only pay tax to AUS based on the income generated in AUS (ie employment), and only pay tax in NZ based on the tax generated in NZ(ie property rent)?
I’m new to this and I just found out about the complexities of the taxation when moving to AUS.
Cheers
JJ Smith
October 16, 2024 at 4:37 pmHi Louis,
Thank you for your comment. Sorry for the delay in replying, I’ve been on holiday with my family.
Is there a way to only pay tax to AUS based on the income generated in AUS (ie employment), and only pay tax in NZ based on the tax generated in NZ (ie property rent)?
Yes, you can be a Australian temporary resident for tax purposes. However, if you are planning on living in Australia long term, there are other considerations you need to weigh up.
Therefore, I recommend reading as much information as you can and then seeking the advice from a professional.
Rather than copy and pasting content that is applicable to your situation, please read all of the below:
– Understanding tax residency status in Australia – https://www.listonnewton.com.au/information-centre/understanding-tax-residency-status-in-australia
– NZ taxes: something every Kiwi in Australia needs to know – https://beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/
– Superannuation non-residents – https://www.exfin.com/superannuation-non-residents
– Temporary resident taxation – https://www.exfin.com/temporary-resident-taxation
Non-residents can continue to make superannuation contributions to superannuation funds in Australia; the rules regarding eligibility to make these contributions in Australia apply equally to residents and non-residents.
Medicare is another area you need to consider. I can’t find out if you can choose to pay the Medicare levy as a Australian temporary resident for tax purpose, or if this is even possible.
Do you want to eventually become an Australia citizen? Then you will need to be a Australian resident for tax purposes.
I recommend working out how much your NZ property is going to cost you in both the above situations, as it is complex owning NZ property while living in Australia.
Please note, not all professionals understand the accountancy rules of being a Australian temporary resident for tax purposes, so you will have to ask that question. I’m happy to put you in touch with an accountant who does.
I hope the above helps. Sorry I couldn’t give you a straight forward answer.
Please feel free to email me back any further questions you have.
CM
September 11, 2024 at 4:59 pmHi there
I am a NZ citizen and have recently moved to Melbourne
My former employer in New Zealand has offered me a remote position on a 12 to 18-month contract. I am uncertain about the salary/pay and the tax implications. Any information will be appreciated. Cheers
JJ Smith
September 17, 2024 at 4:23 pmHi CM,
Thank you for your comment.
Please note, I am not an accountant or financial adviser, so can only advise from information I have been able to find online.
If you work for an NZ company while living in Australia, your tax obligations will depend on your tax residency status. Australian resident for tax purposes or non-resident for tax purposes.
If you are an Australian resident for tax purposes. As a contractor contracting your services to them, you’ll be responsible for your own tax.
As a tax resident, you’ll declare this income in your return. Resident tax rates will apply to your income, that won’t change as long as you remain a resident.
Check out our further info on What remote working means for your tax return: https://community.ato.gov.au/s/article/a079s000000aripAAA/what-remote-working-means-for-your-tax-return.
Source, ATO community support: https://community.ato.gov.au/s/question/a0JRF0000002AEb/p00252181.
The other option is being a non-resident Australian for tax purposes. If you’re a non-resident for tax purposes, you only need to report income from Australian sources. Employment income from the NZ company won’t need to be reported in Australia. If the income is paid into an Australian bank account in your name and earns interest, the interest amount would be reportable.
Because tenancy is based on self assessment, the ATO recommend you check out the tests to determine your tax residency (https://www.ato.gov.au/Individuals/Coming-to-Australia-or-going-overseas/Your-tax-residency/), and the ATO’s online tax residency tool (https://www.ato.gov.au/Calculators-and-tools/Work-out-your-tax-residency/).
It’s also worth knowing Australia and NZ have a tax treaty (https://www.ato.gov.au/general/international-tax-agreements/in-detail/what-are-tax-treaties-/), which prevents multiple countries applying tax to the same lot of income.
Source, ATO community support: https://community.ato.gov.au/s/question/a0J9s000000LvZY/p00179752.
Hope the above helps.
Please feel free to email me back any further questions you have.
Heike
July 12, 2024 at 5:58 pmHi
Do we need to apply for a TFN when we move over as pensioners (who will apply for the Australian pension)?
JJ Smith
July 24, 2024 at 11:20 amHi Heike,
Thanks for your comment. Sorry for the delay, I’ve been on holiday with my family.
Yes, you do need a TFN to apply for the Australian age pension.
Thank you so much for asking this, as it’s highlighted the fact that I am missing this info from my Australian age pension post, so I’m going to go add it: https://www.movingtoaustralia.co.nz/australian-age-pension/.
You must give Services Australia the following details before or when you submit your claim. Documents that show:
– your age
– your bank account details
– your tax file number
– your Australian residence status, unless you’re an Australian citizen who was born in Australia
– if you’re member of a couple
– your income and assets.
You can read more about the documents needed on the Services Australia, supporting documents page: https://www.servicesaustralia.gov.au/supporting-documents-for-age-pension/.
Before you submit your claim, you may need to give them your identity documents so they can prove your identity: https://www.servicesaustralia.gov.au/how-to-prove-your-identity-with-centrelink/.
Hope the above helps.