Yes, you can! If you’re an NZ citizen buying property in Australia, everything works the same as if you were an Australian citizen buying property in Australia. You may even be eligible for the first homeowner’s grant.
However, if you are not an NZ citizen, depending on your visa and residence status, there are some restrictions for foreigners wanting to buy property in Australia.
Find below some advice on buying your dream home in Australia and some smart tips to avoid paying more than you need in fees and charges.
Surcharge purchaser duty law change in NSW
It was previously identified that citizens of New Zealand were not subject to surcharge purchaser duty due to international tax treaties.
Changes to federal law means that these citizens may now need to pay surcharge purchaser duty if they enter into an agreement to purchase residential property in NSW on or after 8 April 2024.
To be exempt you must have been in Australia for at least 200 days within 12 months before the date of the contract.
Read more in my surcharge purchaser duty law change post.
Please note: I am not a financial adviser, accountant, mortgage broker, or property specialist. I have collated all the information in this post online. Please get financial advice from a specialist if needed.
Use your KiwiSaver towards your home deposit for your first Australian home! First Super and First Home Super Saver (FHSS) – lets you withdraw some of your KiwiSaver for the deposit for your Australian first home. Read more here.
In this post you will find helpful information on:
Yes, you can do so as an NZ citizen living in Australia with an SCV.
As an NZ citizen living in Australia, you are treated as an Australian citizen when it comes to buying a home. You can get a mortgage at the same rate and are eligible for the First Home Owners Grant (FHOG) and a possible stamp duty waiver.
There are some restrictions if you are a non-resident, e.g., an NZ citizen not already living in Australia (who hasn’t processed through border control and received your SCV). Non-residents must get approval from the Foreign Investment Review Board (FIRB) before buying a property. The house must be your primary residence and for you as a home. This does not apply to NZ citizens living in Australia.
If you don’t intend to live there full time or buy several properties in Australia as an investment, they must be new-build properties. These laws are designed to ensure that there is a sufficient supply of new housing stock across the country.
However, if you want to purchase property in NSW, you must have been living in Australia for at least 200 days within 12 months before the contract date to be exempt from the 8% surcharge purchaser duty on top of any transfer duty. Read more in my surcharge purchaser duty law change post.
Do you want to purchase a home in Australia from New Zealand so it’s ready for you to move into when you arrive? Yes, you can, but there is extra tax to pay, and you will need some help…
If you are purchasing property in Australia from NZ, you are considered a foreign buyer and must pay a stamp duty surcharge of 7% to 8% (varies from state to state).
Property purchases in the Northern Territory, the ACT, or Tasmania are exempt from foreign buyer stamp duty.
The rule is that if you are a New Zealand citizen residing in Australia and hold a special category visa (SCV) under the Migration Act 1958 (which most New Zealanders do), then additional foreign taxes will not be payable.
If you are a New Zealand citizen residing in New Zealand and enter into a contract to purchase land in Australia, you will not be a holder of an SCV and must pay the additional surcharge of 7% to 8%.
If your plan is to take a plane trip to sign the contract and avoid paying the duty, think again! AFAD will also apply if the evidence indicates that the purpose of entry into Australia is to avoid paying AFAD by obtaining an SCV.
Therefore, you are required to get approval from the Foreign Investment Review Board (FIRB) before purchasing a property, be prepared for the additional 7-8% tax, and are generally only allowed to purchase new dwellings or off-plan properties, such as apartments and houses, that have not yet been lived in. Vacant land that can be developed is also permitted to be purchased as a non-resident.
The Australian Tax Office (ATO) offers online services for foreign investors to manage their obligations regarding Australian investments.
In addition to the application form, which can be found using the above link, you’ll be required to pay an application fee that is dependent on the cost of the new property or vacant land you want to buy.
Once submitted, it generally takes less than 30 days for your application to be approved or declined.
While I wasn’t able to find the process online, UNO home loans explained to buy property in Australia, engaging mortgage and conveyancing services was fundamental.
When buying property, the sale-to-settlement process can quickly become complicated and overwhelming. Conveyancers save you time and money, taking care of important legal documents such as contracts and site visits so you can quickly and easily move into your new home.
There are different ways to go about this, but this is one way. Before approaching the companies below, ensure you’ve researched what type of home you want and how much it will cost.
We recommend the companies below. They have excellent independent reviews, so you can trust their team, charges, and processes.
If you want to buy a home in Australia while still living in New Zealand, you will need to get an expat mortgage. This is one of the harder home loans to get.
Getting a home loan depends on several factors, including your household income, country of residence, deposit amount, and whether your circumstances fit into different bank policies. All banks in Australia have different policies and calculations they use to evaluate a loan application.
This is where UNO comes in! What UNO does for you is look at your individual circumstances, work out which banks would most likely give you a loan, and then approach them for you.
UNO proactively look after customers’ largest household expense, their mortgage and or /home loan. Using loan score technology, UNO analyses your mortgage to save you time and money wherever possible. As experienced brokers, their job is to negotiate the best mortgage deal on your behalf.
UNO prides itself on matching customers to the right home loans across their growing panel of 20 lenders, whether you are purchasing a property or refinancing. Plus, they’re specialists in helping New Zealand citizens to buy Australian property, whether based locally or in Australia, so they’re familiar with the process and how they can best serve your needs.
Do you want to know if you’re eligible to buy a property in Australia from NZ? Do you want to move straight into your own home in Australia?
Simply complete this 30 second questionnaire and find out if a Australian bank will give you an ex-pat mortgage.
You will be asked about your residence status, where you currently live, what your plans are, how much you plan on spending on your new home, your deposit amount, and your income, help calculate your loan-to-income ratio (LIR) and point you in the right direction.
The questionnaire takes about 30 seconds, there is no obligation and you can come back and complete it as many times as you like…
While conveyancers can help you with an array of services, here are some of the most common:
The above companies will make buying a home in Australia from NZ a reality!
When you are buying a home it’s important to do your research. In terms of getting comprehensive comparative sales information, it’s hard to go past the Home Price Guide, available from Australian Property Monitors (APM), a joint venture between HWW Limited, the publishers of Your Mortgage Magazine, and John Fairfax & Sons.
The Home Price Guide list sales details of individual residential properties. Each standard guide lists monitored sales in the previous 12 months in the postcode of your choice. If the property you are purchasing is in the database, you can see how much the current owners paid for it, whether it has been put to auction since it was purchased, and in some cases what the highest bid at an auction was.
Your deposit amount will vary depending on if you are living in NZ or Australia. If you are living in NZ your deposit will be approx 30%. If you have moved over and are living in Australia you should be able to buy a property with only a 5% deposit. If you are living elsewhere it’s pretty difficult to buy a property in Australia as it’s considered non-resident lending.
Banks in Australia can’t lend on property in New Zealand, so if you have an existing property in NZ you want to leverage off, you’re going to have to talk to your NZ bank or a mortgage broker in NZ. Read more below.
No. If you are a New Zealand citizen living in NZ or Australia your interest rates will be the same as the open market, e.g. the same as if you were an Australian citizen.
The First Home Owners Grant (FHOG) in Australia is designed to encourage and assist home ownership across the country, and for eligible borrowers, it’s a great start to life as a property owner.
The grant differs in each state and territory and in most places it applies to new homes only and is valued between $7,000-$26,000.
The Australian government’s First Home Owners Grant (FHOG) and other benefits are available to permanent residents as if they are citizens of Australia. Because NZ citizens are considered to be permanent residents of Australia they are eligible for the grant.
FHOG does not take into consideration NZ property, only property you’ve owned in Australia.
Read more in my Are New Zealand citizens eligible for Australia’s First Home Owners Grant? post.
Getting a mortgage in Australia is pretty similar to New Zealand. You will need to figure out how much you can borrow based on your income and expenses. You will need a deposit, which is usually a minimum of 5 per cent of the value of the property. You also need to pay for stamp duty on the property, which will cost several thousands of dollars, depending on which state you live in.
Want to know if you are likely to get a loan right now? UNO have created a questionnaire where you can input your financials and see if you would currently be eligible for a home loan/mortgage in Australia.
You will be asked about your residence status, where you currently live, what your plans are, how much you plan on spending on your new home, your deposit amount, and your income, help calculate your loan-to-income ratio (LIR) and point you in the right direction.
The questionnaire takes about 30 seconds, there is no obligation and you can come back and complete it as many times as you like…
Or read my Australian mortgage post and find out more about UNO and how they can help you.
Financial institutions in Australia will usually check your credit rating in New Zealand. If you are not sure where you stand, you can get a free copy of your credit file from Equifax: https://www.equifax.co.nz/personal.
In order to get your application processed in the quickest time frame possible, it is important to have all your paperwork ready. You’ll need:
Read more about identity checks and what identity requirements you will need to meet: https://auspost.com.au/id-and-document-services/identity-checks-for-property-transfers/identity-checks-for-buyers-and-sellers.
If you own a property in NZ and want to leverage off that. You need to get your NZ bank to release the equity in your NZ property (refinance your mortgage) so it can then be used as a deposit for your property in Australia.
Australian banks are unable to lend off New Zealand property. Even though we have similar banks in both countries, their systems are completely different and they don’t talk to each other. So you are going to have to apply for a loan in NZ and a loan in Australia to be able to leverage the equity.
Yes, you can! There is quite a history with this, but once again New Zealanders moving to Australia are able to transfer their KiwiSaver to Australia and use some of it as a deposit for their first home. You must meet the criteria set out by the ATO and make sure you set up the right account with the right super fund provider.
The ATO says ‘If you transfer an amount into an Australian super fund from a KiwiSaver scheme, the amount will be an eligible contribution (except for certain amounts)’. There is no requirement for you to be an Australian citizen, Australian resident or an Australian resident for taxation purposes for the FHSS.
Find out what the ‘certain amounts’ are, what super fund provider you need to register with, what you need to know about the First Home Super Saver (FHSS), the KiwiSaver to super fund transfer process and how to withdraw $15,000 to use as your first home deposit in Australia (up to $50,000) in my KiwiSaver and First Home Super Saver (FHSS) post.
Stamp duty is a tax on a property transaction that is charged by each state and territory and goes straight to the state government. The amounts can and do vary. The stamp duty rate will depend on factors such as the value of the property if it is your primary residence and your residency status.
You can calculate the stamp duty you may have to pay on your property using this stamp Duty Calculator: https://www.realestate.com.au/home-loans/stamp-duty-calculator.
First homeowners, purchasing for the first time in Australia will more than likely be eligible for a stamp duty waiver. However, it will take into account if you own or have owned any property anywhere including New Zealand. So if you do own, or have owned a property previously, then you won’t be eligible for the stamp duty waiver.
There are different purchase amounts that need to be adhered to depending on the state you are buying in, e.g. in Queensland if you purchase a home for $500,000 or less you will pay no stamp duty. If you are purchasing a property between $500,000 and $550,000 you get a discount.
Stamp duty varies from state to state. You can read more about the stamp duty in the state you are planning to move to and its exemptions and concessions here: https://www.homeloans.com.au/news/getting-most-out-stamp-duty-exemptions-state.
If you own an asset overseas, you may have to pay Australian tax when you sell it. Therefore, you need to keep appropriate records.
If you acquired an overseas asset before you became an Australian resident, you are taken to have acquired the asset when you became a resident.
Similarly, if you cease to be an Australian resident while holding an overseas asset, you are deemed to have disposed of that asset at the time you cease to be a resident.
To accurately calculate the capital gain or loss, ensure you keep a record of the value of your asset at these times. This is a complex area of tax law, and exemptions may apply.
Therefore, if you plan on renting your home while settling in Australia, you must pay CGT when you sell it. If you sold it before you left, you wouldn’t.
However, your accountant can make you a temporary resident for tax purposes, exempting you from tax on your overseas income. Read more about this in Beyond Accountancy’s post: NZ taxes: something every Kiwi in Australia needs to know.
If you sold assets during the year, such as property or shares, you need to work out your capital gain or loss for each asset. You pay tax on your net capital gains.
You can use the CGT calculator on the Australia Government ATO website.
As mentioned above, as a New Zealand citizen living in Australia, you can choose to be an Australian “temporary resident” for tax purposes.
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:
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.
Find out how to get the best foreign exchange rate and save on fees.
If you already own a home in New Zealand and are planning on selling it and buying in Australia, then educating yourself on foreign exchange is a must. The same goes for transferring any money from NZ to Australia. Why throw away your hard-earned cash?
To give you an idea of how much you could save, XE has compared three major banks in New Zealand for a $1,200,000 NZD / AUD transfer. XE would have saved you between $9,070 and $25,870, depending on which bank you use.
**This comparison was made on 21.08.17 by speaking to the foreign exchange teams at 3 of the leading banks.
You will save a lot of money by using an online foreign exchange company to exchange your NZ Dollars for Australian Dollars and then deposit them in your Australian bank account. Banks will charge you a great deal to convert and transfer your money.
Find out more about using an online foreign exchange company and how online money transfer works.
Of course, you can start looking for your new home from NZ. The below websites are the top real estate sites in Australia:
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!
Hi… I’m JJ Smith.
I’m the creator and editor of Moving to Australia and have been for 17+ 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 17+ years from personal experience and through interacting with visitors. This is my job, making sure the information here is comprehensive and up to date.
If you would like to help me, you can use one of my referral partners.
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Lu
June 27, 2021 at 9:03 amHi JJ we are Australian citizens living in New Zealand so long now that we have cleared out all documents that name our tax numbers. We have had to reapply to the ATO via snail mail to be informed what our numbers are and that will take over a month. Meanwhile we have also had an offer accepted to purchase a house in Queensland. Settlement day is under one month … Do you know whether an Australian tax number is required for the actual settlement process, or whether it is required for activities after the settlement day? I assume we can still do things like pay stamp duty without stating the Tax number? I look forward to any advice you could provide, thanks, Lu
JJ Smith
June 29, 2021 at 12:56 amHi Lu,
Thanks for your comment.
Such a shame you have to wait for an actual letter to arrive.
I am not sure if TFN is required at the time of the settlement. I recommend you ask your real estate agent or mortgage broker whether a TFN is needed to pay stamp duty.
Sorry I couldn’t help.
Manjari Kulkarni
June 22, 2021 at 2:59 amHi JJ,
Thank you for this website. I have been thoroughly reading each section of this site and gaining a lot of insights about life in Australia. We are NZ citizens (Young family of 4). My husband is moving to Perth, WA in July and would be living with my sister in law initially, our kids and I plan to join him by October this year. (hopefully we find a rental place by then) I was wondering if he can invest in a house and land package (turn key) while hes living there?
Do we need to be living in WA at least for a period of 6 months to be eligible for a loan? We do not own any property in NZ, therefore the one in Perth will be our first home owned. Can we use our Kiwisaver to contribute towards the deposit for or first home? How long does it take for the kiwisaver to be transferred to our account when we move?
Please advice.
Many thanks
MK
JJ Smith
June 27, 2021 at 11:33 pmHi Manjari,
Great move sending your husband over first. He should be able to either find a rental or purchase a house before you get their depending on your individual circumstances.
Hunter Galloway are Australian mortgage brokers. They offer and free assessment to find out about your personal situation and can advise you how much you can borrow etc. Here is a good post of theirs: https://www.huntergalloway.com.au/new-zealand-citizen-home-loan/.
From my research you do not need to have been in Australia for 6 months to get a loan. However, you do have to prove you can service the loan you need, so it depends on what you are earning and have in the bank.
You are able to either take your KiwiSaver with you and/or use a portion of it to purchase your first home whether in NZ or Australia. You will need to get in touch with your KiwiSaver provider as early as possible to discuss their requirements. You will need to ask them about time frames.
Here is an article about ‘Kiwisaver: Can you buy first home in Australia?’. Unfortunately I can not find anything more recent: https://www.nzherald.co.nz/business/kiwisaver-can-you-buy-first-home-in-australia/FN3V3RXP7WWZECDNCWZ2YIHTPA/.
You are eligible for the First Home Owners Grant (FHOG) in Australia and it is well worth looking into: https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/.
Please feel free to email me back any further questions you have.
Good luck with your move.
MK
June 13, 2021 at 1:15 amHi.
I was wondering if you can help me with some advise on the foreign buyers tax. We are moving over to Queensland from NZ in November. We would ideally like to have a house purchased so we can move straight in when we arrive. Do we have to be in Australia for a period of time before settlement… We have heard that we can purchase a house and as long as we are in Australia on settlement day we don’t have to pay the tax? Do you know if that is right?
Thanks so much for your help!
JJ Smith
June 15, 2021 at 12:58 amHi MK,
Thanks for your comment.
I have never come across any info that states you will not be charged AFAD if you are in Australia on settlement date. All the info, as per below, states that you need to be in Australia to sign the sale and purchase contract. However, you can fly in sign the contract and fly out.
Additional foreign acquirer duty (AFAD)
A New Zealand citizen residing in New Zealand enters into a transaction for AFAD residential land in Queensland.
AFAD will apply, because the person will not be the holder of a special category visa under the Migration Act.
Soruce: https://www.business.qld.gov.au/industries/service-industries-professionals/professional-financial-services/transfer-duty/investors/afad.
AFAD � ADDITIONAL FOREIGN AQUIRERS DUTY � WHAT THIS MEANS FOR NEW ZEALANDERS PURCHASING PROPERTY IN AUSTRALIA
Essentially, the special category visa allows the holder of the visa to fall within the scope of the exemption for a ‘foreign individual’ and accordingly, no AFAD will be charged.
What this means is that if the visa holder is present in Australia when signing the contract of sale, the AFAD will not be applicable, and result in a significant saving in duty payable on the transaction. As detailed above, the AFAD on a $500,000 purchase would be $15,000 (it’s actually 7% in QLD, not the 3% used in this example), so for the sake of a return flight from New Zealand to Australia to sign the contract, it may well be worth the cost of a return plane ticket to save thousands of dollars in duty. Source: https://www.affinitylawyers.com.au/afad-additional-foreign-aquirers-duty-what-this/.
Another thing to take into account is that if you are moving your household items over, it will take at least six weeks. There is a global shipping crisis at the moment that will effect your move: https://www.movingtoaustralia.co.nz/global-shipping-crisis-caused-by-coivd-19/.
Please read this post on foreign exchange, as if you are moving a large sum of money over to Australia, you can save a lot compared to transferring through your bank: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Lynda
June 7, 2021 at 10:52 pmHi JJ
My husband and I are moving to Australia next year to be close to our children/grandchild and are going to sell our home in NZ to purchase (cash buyer) in NSW, or Victoria. Can we buy a house while in NZ before we move so we have a house to go straight to which is what we wish yo do as our sons are able to view any property for us. I read in a post that you have to be present to buy property? Is this correct. What is the best way to go about this? Thanks.
JJ Smith
June 15, 2021 at 12:39 amHi Lynda,
Thanks for your comment. Sorry for the delay in replying.
The biggest issue most New Zealand based citizens face is the additional stamp duty payable on purchases in Australia. In Queensland the Additional Foreign Acquirer Duty adds 7% on top of the regular stamp duty payable. On a $500,000 purchase, this would mean a total of $52,461 in stamp duty payable. In NSW it’s 8%.
Here is a link to the NSW Government Revenue website that outlines taxes, duties, levies and royalties: https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty/surcharge-purchaser-duty/surcharge-for-individuals.
Therefore you need to weigh up the extra costs if you want to purchase from NZ. I think you are able to fly in and sign all the paperwork needed, then return to NZ as long as it’s not for too long.
Another thing to take into account is that if you are moving your household items over, it will take at least six weeks. There is a global shipping crisis at the moment that will effect your move: https://www.movingtoaustralia.co.nz/global-shipping-crisis-caused-by-coivd-19/.
Please read this post on foreign exchange, as if you are moving a large sum of money over to Australia, you can save a lot compared to transferring through your bank: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Lynda
June 21, 2021 at 11:37 pmThanks JJ
That is very helpful thank you.
Russ
June 1, 2021 at 3:29 amHi JJ
Have you or any other Kiwi, on this platform, owned a house in New Zealand, but were still eligible for a First Home owners grant in Australia? We no longer own any property in NZ. And have not owned in Australia. Your feedback would be most helpful. Thank you.
JJ Smith
June 3, 2021 at 2:32 amHi Russ,
Thanks for your comment.
Here is the info you need to read including the eligibility tests:
– https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant
– https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant/apply-first-home-grant/first-home-check-eligibility
A permanent resident holds a permanent visa, or is a New Zealand citizen with a special category visa, as defined by the Migration Act 1958 (Cwlth).
I have completed an eligibility form and as an NZ citizen we are accepted (https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant/first-home-eligibility-test).
However, the transferring of kiwi saver is a very tricky one. Here is a NZ Herald article that will help you: https://www.nzherald.co.nz/business/kiwisaver-can-you-buy-first-home-in-australia/FN3V3RXP7WWZECDNCWZ2YIHTPA/. It states that you may be able to, but to do this it needs to still be your first home.
Please feel free to email me back any further questions you have.
Good luck with your move.
amy
May 27, 2021 at 6:16 amHi,
My son is New Zealand citizen, just finished high school and went to university in Sydney this month ,he got scholarship , I can support him to buy, can he buy a unit or studio or apartment now in Sydney ? this will be his first property , can he get first home grant?
Many thanks
JJ Smith
May 30, 2021 at 11:07 pmHi Amy,
Thank you for your comment.
If you son is 18 years or older you will be able to assist him to buy an apartment in Sydney.
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. It’s a new home that no-one has lived in before. It’s worth no more than $750,000.
Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated. More information: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer.
You can either apply directly to Revenue, a department of the NSW government, or his bank/mortgage broker will do it on his behalf.
Make sure you transfer any money to Australia through an online money transfer company like XE or OFX, as they give you better rates than any bank, don’t add additional margin and don’t charge you transfer fees: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please feel free to email me back any further questions you have.
violet skies
May 10, 2021 at 4:17 pmhi there, i have a question. both my parents and myself are new zealand citizens but we have lived in australia for over 10 years and have since moved back to new zealand. we are planning to move back to australia soon so does that mean we still have permanent resdiency? also how long do you have to wait before buying a house when you move from new zealand to australia Thank you!
JJ Smith
May 13, 2021 at 10:05 pmHi Violet,
Thanks for your comment.
Did you apply and get granted Australia permanent residency? You don’t get granted it automatically. I recommend you read this article: https://immi.homeaffairs.gov.au/Visa-subsite/Pages/extend-expired-visas/your-visa-is-expiring-or-has-expired.aspx.
Regarding buying a home in Australia, there is no minimum term requirement for an NZ citizen to apply for a home loan in Australia, so you can buy a home immediately.
You will receive similar benefits that an Australian first home buyer would receive like the First Home Owners Grant (FHOG) and stamp duty concessions/ exemptions. In addition, you do not need the Foreign Investment Board Review (FIRB) approval.
All round good news I hope!
IRINA PLUMMER
May 6, 2021 at 8:30 amHello. I am selling my house in New Zealand and straight after that moving to NSW and planning to buy a house there. It will be my only home. I am going to live in Australia. Will I need to pay FB tax if I buy a house 2-3 months after I arrive in Australia?
JJ Smith
May 13, 2021 at 10:25 pmHi Irina,
Thank you for your comment.
What is FB tax? There is stamp duty, land tax, capital gains tax and GST. I can’t find anywhere that states an FB tax.
You will receive similar benefits that an Australian first home buyer would receive like the First Home Owners Grant (FHOG) and stamp duty concessions/ exemptions. In addition, you do not need the Foreign Investment Board Review (FIRB) approval.
Please feel free to email me back any further questions you have.
Good luck with your move.
Prabhjot Brar
June 30, 2021 at 5:22 amHi
If we own 1 property in NZ and then moving to Aussi and want to buy house there, can we get first home grant in Aus as in aus it will be our first home?
Like we will be eligible for home grant in Aus if we have owned house in nz before?
JJ Smith
July 4, 2021 at 11:49 pmHi Prabhjot,
Thank you for your comment.
The Australia First Home Owners Grant doesn’t take into account property ownership in NZ only Australia, so yes you would be eligible!
Here is more information on the FHOG and links to State by State grants, amounts and dates: https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Danielle
March 21, 2021 at 7:16 pmHi,
Can you please tell me if I have this correct?
Permanent residents – dont pay foreign buyers tax but do pay tax on foreign income earned.
Temporary residents – pay FB tax but not tax on foreign income.
I am wanting to move to Queensland to buy a house to live in permanently, but my income will always be from NZ only.
So I would be a temporary resident as my income is earned in NZ and it makes better sense to pay tax on NZ income to NZ.
That means when buying a property, I’d have to pay 7% fb tax plus any state tax plus the cost of “investment” as I wouldn’t be a permanent resident and so it cant be classed as an owner occupied property even though I’ll be living there permanently?
But yes, I would be entitled to the First home owners grant if building new! Anywhere between 7k and 26k.
Is all of this correct? And is there anything I’ve missed?
Thanks so much for all of the info. Most appreciated
JJ Smith
March 21, 2021 at 8:25 pmHi Danielle,
Thanks for your comment.
Yes that sounds right but I’m no tax expert so I’ve CC’d in Stela at TaxBack for her to check with her team.
TaxBack will also be able to get you a Australian Tax File Number (TFN) for free after you’ve moved – https://www.movingtoaustralia.co.nz/australian-tax-what-you-need-to-know/.
Please feel free to email me back any further questions you have.
Good luck with your move.
Trevor Sherwood
February 10, 2021 at 7:28 amI am a New Zealander and live in New Zealand. My daughter is an Australian. She wants to buy an apartment in Sydney and has asked me if I would like to pay 50% of the purchase price and have 50% ownership rights. She would pay me a partial rental.
Is it possible to arrange such a purchase and if so, what relevant costs would involved?
JJ Smith
February 11, 2021 at 9:07 pmHi Trevor,
Thanks for your comment.
I can’t advise you on buying half a property in Australia from New Zealand, as haven’t been through the process. However, I’m sure Commonwealth Bank will be able to advise you, so I have CC’d in Ankur from CommBank.
Ankur should be able to advise you on the buying process and what costs are involved.
If you are looking into buying a new apartment, you may be eligible for the First Home Owners Grant (FHOG): https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/.
I also advise that you look into opening either an XE or OFX account to transfer your deposit to Australia, as they give you the best rates with less margin and no fees: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Please let me know how you get on, as this information would be really helpful to other visitors.
Feel free to email me back any further questions you have.
Shala Hall
June 21, 2020 at 4:50 amHello JJ Smith,
Thank you for your newsletter!
I am a Kiwi and a little backing story with me, I shifted to QLD in Dec 2009 and stayed till 2016 and returned back to NZ. In that time I had my own home in QLD and was entitled to the first home owners grant.I worked for some large Australian owned companies but found it near impossible to get citizenship as my trade wasnt one sought after and I wasn’t there before a certain date. My parents are getting older and I would like to go back in January and get a cheaper unit under $280K.
My questions are-
What is the least deposit I can get away with?
Is there a grant for a home that isn’t a new build
The typical rate for lenders insurance based on $250K
Do I have to work for an Australian company or can I buy when working in NZ?
Should I save my money monthly and transfer it over Via OFX or XE to my Australian Bank?
Do I need to be there to get the unit or if not do I risk the 7% tax I read about ob previous threads?
Thank you so much and trust you and the family have been keeping well.
S
JJ Smith
October 14, 2020 at 10:38 pmHi Shala,
Thank you for your comment and sorry for the delay in replying.
Unfortunately I am not a banking specialist, so can only give you my opinion.
There isn’t a grant for buying an existing home and since you have already used the first home buyers grant you wouldn’t be eligible anyway.
I recommend you read the below articles and get a mortgage brokers to answer your questions and help you:
– https://www.yourmortgage.com.au/mortgage-brokers/best-mortgage-brokers/
– https://www.theadviser.com.au/features/rankings/40017-top-25-brokerages
From what I know of the Australian property market you do need to be there to buy he property, but a mortgage broker will be able to help advise you on that too.
It would be up to you when you transfer your money to Australian, but I do recommend you register with XE and get to know exchange rates now so you can make an educated decision that could save you thousands. Their team are really awesome and can help you make the right decision for you: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Sorry I couldn’t be of much help.
Please feel free to email me back any further questions you have.
Good luck with your move, when you can move.
JJ Smith
October 15, 2020 at 3:08 amHi Shala,
This article might help you: https://www.huntergalloway.com.au/new-zealand-citizen-home-loan/.
Since your enquiry I am looking for a mortgage broker in Australia that can help New Zealanders wanting to invest.
I’ll let you know if I find anything else.
Liz
May 24, 2020 at 12:34 amHi we moved 10 months ago to Sydney. We were hoping to use our Kiwisaver to purchase our first home here in Australia. Unfortunately I’ve been advised I’m not able to and I could transfer to an Australian super fund. Do you have any recommendations?
Kind regards
Liz
JJ Smith
May 26, 2020 at 12:35 amHi Liz,
Thanks for your email.
There used to be some banks/institutions that would allow you to purchase a property using your Kiwisaver, but this has changed and now you aren’t allow to – https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11450774.
You are able to transfer your Kiwisaver to your Australian Super. More info – https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/Trans-Tasman-retirement-savings-portability-scheme-for-individuals/.
However, I don’t know if you can use that to purchase your first home. Is your transfer considered voluntary payments??? If it is you would be able to use up to $30,000 of voluntary super contributions to use as a deposit on a home. More info – https://www.finder.com.au/using-super-for-a-home-loan-deposit.
As a New Zealander you eligible for Australia’s First Home Owners Grant (FHOG). Read here all about it – https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/.
Hope the above helps.
John Bancroft
October 30, 2019 at 1:06 amHi
I and my wife are looking to buy a new home in Australia. We have our belongings in storage here in NZ ready to ship and have made an offer to buy a flat. Our solicitor is saying we are liable to pay the AFAD (foreign buyers’) tax (of 7%!) in Queensland as we are not currently living in Australia and only entered the country to get a special visa and avoid being liable for this tax. We in fact visited to choose and then inspect the flat but have returned to NZ for a couple of months to effect our move. This sounds wrong to me as NZ citizens are supposed to be exempt from AFAD (or FIRB), unless the purchase is for investment purposes rather than to move into the property to live full time. What do you think?
Regards
John
JJ Smith
October 30, 2019 at 1:40 amHi John,
Thank you for your comment.
Unfortunately I have come across this before. My brother had to fly to Australia to complete the purchase of their first Australian home. He then returned to NZ finished what he had to do and flew back with his family. It was cheaper than the 7%.
Hope you transferred your money through XE or OFX, as they give you the best rates with less margin and no fees: https://www.movingtoaustralia.co.nz/foreign-exchange-money-transfer/.
Hope the above helped.
Please feel free to email me back any further questions you have.
Monique
July 8, 2019 at 9:19 amHi MTA! Thanks for an informative site.
I currently have a rental property in New Zealand and am moving to Brisbane in about a month’s time.
In what way will owning property in NZ affect buying real estate in Queensland?
For example, capital gains tax?
Can I use equity in my NZ property?
Can I buy an existing home, or do I have to build, or buy brand new?
Thanks for your assistance 🙂
JJ Smith
July 24, 2019 at 12:24 amHi Monique,
Thank you for your comment. It is a very good question!
Owning a rental property in NZ won’t affect you buying a home in Australia or even applying for first home owners grant (FHOG). However, the FHOG only applies to new homes (https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/).
You can release equity in a property in NZ to buy in Australia, but it will involve two separate home loans. Firstly, you need to refinance your mortgage in NZ in order to release equity. This is something you must get with your bank in New Zealand to complete. The other home loan will be in Australia with an Australian bank or lender to buy a property using the equity from your NZ property as a deposit. Read this post which explains the above in detail: https://www.homeloanexperts.com.au/non-resident-mortgages/new-zealand-citizen-mortgage/.
Regarding tax obligations read this article: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/. It outlines the obligation of a Australia resident, temporary resident or non resident, including capital gains tax on NZ based rental properties. You see, 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.
Another area you want to research is foreign exchange. As you are considering buying in Australia, you will save hundreds to thousands with rates that the banks will never match: https://www.movingtoaustralia.co.nz/money/foreign-exchange.
Please feel free to email me back any further questions you have.
Good luck with your move.
Monique
August 12, 2019 at 12:57 amThanks so much for your reply. Thats a very useful link to the accountants site, thankyou, I will remember that. And good to know that all going well I won’t be taxed on capital gains or rental income in NZ. Sounds like I will have to get a good accountant to help me tho! I won’t be in Australia for ever, and will likely move back to NZ in a few years or so.
Thanks so much for your other recommendations abut transfers etc.
So kind of you to help people like myself!
Thanks again
Have a great weekend 🙂
Kindest Regards
Monique
Caroline
June 26, 2019 at 2:51 amHi,
Thank you for this newsletter.
We are starting to look at this aspect of things now.
One thing I’d like to know: in NZ, we have leaky buildings and we do need to do our due diligence prior to purchasing the house.
I guess it’s good practice to get a lawyer and a building inspection anyway, but is there anything suck as leaky buildings or suspicious builds that we need to be aware of?
Thank you again for your help,
Best regards
JJ Smith
June 26, 2019 at 2:52 amHi Caroline,
Thank you for your email.
I have done some research and there are cases of leaky homes in Australia. Not to the same level as New Zealand and Canada.
Therefore, I would recommend getting a building inspection before buying a home in Australia. It’s always best to know what your getting into when spending hundreds of thousands of dollars.
Good luck with your move.