Moving to Australia from New Zealand?
Get all information you need to make a successful and stress-free move across the ditch.
Please be advised that while we do our best to keep this information up to date, OFX does not provide tax advice, and you should always consult a tax professional about your individual circumstances.
Below you will find information on the below:
Generally speaking, if you are transferring your own money to yourself, you will probably not be required to pay additional taxes on the money. For example, if you are a New Zealander who has moved to Australia and you want to move your savings to Australia, you will usually not be obliged to pay additional tax, as you have already been taxed on your income. Transferring existing money to your spouse is also not usually taxed in most countries.
Once you become a legal resident of a new country, the income you earn from overseas will often be taxed, and that income can include capital gains, pension payments, and employment income. Because all countries have different tax structures, it’s best to research the specific countries involved before transferring. Here is a good article on tax obligations of Kiwis living in Australia: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
If you’ve received a hefty inheritance or have sold a property overseas and wish to transfer the money, various taxes may apply such as inheritance tax, capital gains tax or gift tax. However, once those taxes are paid in the local jurisdiction where the assets originate and the funds are yours, you may not have to pay tax again to move the money overseas.
Many, but not all, countries have double-taxation treaties in place, which protect citizens from paying tax on money twice. However, you may be required to provide proof that you have paid the tax, e.g. estate or gift tax to the foreign government.
While you may not need to pay tax on large sums of money being sent abroad, some governments will require you to file a declaration that you are bringing the money into the country. Failing to declare the assets could result in a fine. Again, contact a professional or check the websites of the local tax authorities to see what you need to do to comply.
Pension or retirement accounts often have complicated tax limitations regarding early withdrawal or using the money to fund investments. You should check the local tax laws that apply in both jurisdictions when moving your pension overseas.
There may be different limitations depending on the amount you are planning to transfer, e.g. the entire balance of your retirement account or smaller monthly payments of $5,000.
If you are receiving regular payments from a pension abroad and want to reduce the costs associated with converting the money to your local account, use OFX to get better exchange rates and lower fees on recurring transfers.
Most countries make a distinction between financial gifts and other types of support for families overseas. For example, when paying tuition for study abroad, it is unlikely that you will be taxed on such an expenditure, especially if the child is considered a dependent for income tax purposes.
However, if you simply want to give your mature son or daughter a lump sum of money, it may be considered a gift and there could be tax implications. We recommend you check with your accountant to determine what if any tax obligations you both have.
If you are transferring money for a medical procedure or other health care costs associated with aging relatives, these are not usually considered gifts, but different governments have different guidelines for determining if tax is required.
If your residency status changes during the tax year or you need to pay capital gains tax on assets sold overseas, you can use OFX to transfer money swiftly and securely while saving money on bank fees and margins. Banks often charge a margin of up to 5% on the daily exchange rate in addition to hefty transaction fees, so on a $10,000 transfer, you could pay $500 to your bank. This is too much.
When you are ready to make your overseas money transfer, use OFX so you don’t get stung by high bank fees and margins. Their exchange rates are consistently competitive, so you can keep more of your hard-earned cash.
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!
At OFX, we’ve teamed up with leading professional recruitment consultancy company Michael Page to bring you some solid advice when it comes to looking for work as an expat in Australia.
Michael Page is part of PageGroup, which helps facilitate matches between job seekers and employers, providing advice on salaries, employment markets and regional information for clients and candidates across more than 30 countries. When you arrive in a new country, it might take a while to truly settle. There are a few things you can do to speed things up and make a truly successful international career move.
It sounds obvious, but before you move to Australia in the hope of finding a job, it’s important you know whether you have the right to work. For example, those with a Temporary Work (Skilled) visa (457), are permitted to work for one employer for up to four years, but this can be significantly shorter if the sponsor is a new business. The Australian Government’s border and visa page has more information on this and a number of other visa types.
Michael Page’s Global Opportunities team provides guidance for job seekers moving between Australia, New Zealand and the UK on finding work in a new country.
Many professionals arrive in Australia during the summer, not knowing that December and January are typically slow periods for hiring. Hiring activity tends to pick up again in March. Similarly, many Aussies head over to the UK during the summer months, not knowing that this is when recruitment slows down. Conversely, temporary work may increase to cover employees on their annual leave.
Some qualifications are not recognised in Australia, meaning foreign workers may require additional training to become fully qualified. For example, if you’re a professional in accounting, legal or construction, employers may have particular requirements for local qualifications. These could limit your job opportunities unless you can obtain equivalent qualifications to practice.
Moving to Australia will mean exchanging your local currency to Australian dollars, and you’ll want to get as much out of your local currency as possible to make your funds stretch. Once you’ve set up your Australian bank account, send your money with a foreign exchange service to avoid your bank’s high exchange rates and transfer fees. At OFX, not only do we offer highly competitive rates, but we also give you the option to set up regular payments, which automatically transfer your money to your Australian bank account as often as you like (for up to 12 months).
Recruiters often make tweaks to candidate resumes to make them more suitable to local employers. Resumes in Australia are usually just a couple of pages and highly geared towards listing past achievements as well as responsibilities. You should also ensure you can provide references in English that can easily be verified, for example, providing a written reference with the referee’s contact details so the potential employer can quickly follow up.
In today’s job market, there is an abundance of strong local candidates. It can be difficult to outperform professionals with a background in their home market. However, all is not lost. A combination of patience and a focused job search can go a long way. When searching and applying, here are some things to keep in mind:
When you arrive in Australia, it’s advantageous to have an understanding of the company or companies you would like to work for. This may determine which State and area you want to move to. Other questions to ask yourself include: ‘Will it be suitable for my family?’, ‘Where is my industry experience most in demand?’, ‘Is the office relatively easy to commute to?’ Michael Page provides help with this in their City Guides.
Many candidates accept contract or interim roles before finding permanent work in the local market. This may allow you to get your foot in the door and gain more local experience, making you more competitive.
Many candidates assume they can shift careers as easily as they can move country, however, this is rarely the case so keep this in mind when considering a career change. Landing a new role in a foreign country can be difficult enough, let alone making a career change simultaneously. To find out how PageGroup’s Global Opportunities team can help your international career move, or for more general information, visit their Global Opportunities page.
Finally, here are some additional things to consider for expats planning on working in Australia.
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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