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.
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 their 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 a sufficient supply of new housing stock across the country.
However, suppose you want to purchase a property in NSW. In that case, 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.
Of course, you can start looking for your new Australian home from NZ. The top two real estate websites in Australia are:
When buying a home, it’s essential to conduct thorough 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 lists 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 whether you are living in NZ or Australia. If you are living in NZ, your deposit will be approximately 30%. If you have moved to Australia and are living there, you should be able to buy a property with only a 5% deposit. If you are living elsewhere, it’s quite challenging to purchase 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. 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.
Obtaining a mortgage in Australia is similar to that in 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 property’s value. You also need to pay for stamp duty on the property, which will cost several thousand dollars, depending on which state you live in.
Want to know if you are likely to get a loan right now? UNO has created a questionnaire where you can input your financial information and determine if you are currently 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, to help calculate your loan-to-income ratio (LIR) and point you in the right direction.
The questionnaire takes about 30 seconds, and there is no obligation; you can come back and complete it as many times as you like as your moving to Australia process progresses and your individual circumstances change.
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 unsure about your credit file, you can obtain a free copy from Equifax.
To ensure your application is processed as quickly as possible, it is essential to have all your paperwork ready. You’ll need:
You will likely be asked to complete an identity check by your conveyancing practitioner for land or property, which can be done at an Australian Post shop. Read more about identity checks and the ID requirements you need to meet on the Australia Post website, identity checks for buyers & sellers.
If you own a property in NZ and want to leverage it. 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 on New Zealand property. Although we have similar banks in both countries, their systems are completely different and don’t communicate with 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 a significant history behind 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 ensure that you set up the correct account with the appropriate 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 property transactions that is charged by each state and territory and is remitted directly to the state government. The amounts can and do vary. The stamp duty rate will depend on factors such as the property’s value, whether 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.
First-time homeowners purchasing in Australia will likely be eligible for a stamp duty waiver. However, it will take into account whether you own or have owned any property anywhere, including New Zealand. So, if you have owned or currently own a property, 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, including its exemptions and concessions, here in this article: Getting the most out of stamp duty exemptions in your 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 becoming an Australian resident, you are taken to have acquired the asset at the time 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 (including the CGT main residence exemption below).
However, your accountant can make you a temporary resident for tax purposes, exempting you from tax on your overseas income. To understand this strange loophole, I recommend you read 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 Australian Government ATO website.
In Australia, your family home (main residence) receives favourable tax treatment. Most importantly, it is exempt from Capital Gains Tax (CGT), and this exemption can extend to your New Zealand home if it continues to be treated as your main residence.
This means you don’t need to rush into selling your NZ property when you move. Under the 6-year rule, you can keep treating it as your main residence for up to six years, giving you time to sell your NZ home before buying a new property in Australia.
You can read more about the CGT main residence exemption and the 6-year rule, including how to apply it in your tax return, on the 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 essential to note that these benefits depend on individual circumstances and may not be applicable 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 plan to sell it and buy in Australia, then educating yourself on foreign exchange is essential. 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 NZD for AUD and then deposit them in your Australian bank account. Banks will charge you a great deal to convert and transfer your money.
Read more about using an online foreign exchange company and how online money transfer works.
Do you want to purchase a home in Australia from New Zealand, ready for you to move into when you arrive? Yes, you can, but there is an 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), you are exempt from paying additional foreign taxes.
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 you plan 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 buy 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 Taxation Office (ATO) offers online services for foreign investors to manage their obligations related to Australian investments.
In addition to the application form, you’ll be required to pay an application fee that is dependent on the cost of the new property or vacant land you wish to purchase.
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 that to purchase property in Australia, engaging in mortgage and conveyancing services was fundamental.
When buying property, the sale-to-settlement process can become complicated and overwhelming quickly. 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 various ways to approach this, but this is one method. Before approaching the companies below, ensure you’ve researched the type of home you want and its associated costs.
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 most challenging home loans to obtain.
Obtaining a home loan depends on several factors, including your household income, country of residence, deposit amount, and whether your circumstances align with the 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 assess your individual circumstances, determine which banks are most likely to lend to you, and then approach them on your behalf.
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 its 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 an Australian bank will give you an expat 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, to 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, if you’d prefer to speak with a real person, you can complete this short Buyer Readiness Quiz (just 30 seconds, 6 simple questions). You’ll receive personalised feedback on your situation along with guidance on your next best move.
At the end of the quiz, you’ll have the option to book a free, no-obligation chat directly in Paul Davey’s diary. Paul is Moving to Australia’s dedicated mortgage broker, specialising in helping New Zealanders buy their new homes in Australia. He’s incredibly knowledgeable and genuinely helpful, and worth completing a little quiz to talk to!
For more information on getting an Australian mortgage, UNO or Paul Davey, read my Australian mortgage post.
Conveyancers take the complication out of the property so you can save time and money where it matters most.
From contract reviews to order searches and title transfers, conveyancers take care of the complex aspects of buying and selling, so you can buy with confidence and peace of mind. Whether you are buying property in Australia from NZ or while living there.
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!
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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Daniel&Kyle
September 3, 2023 at 12:01 pmHi JJ,
We do have existing property in NZ. We are planning to move in Australia from NZ but I’m planning to go there first to work while my family will continue to live in NZ for a while. We’re also planning to buy a property in Australia once I arrive in there but my question is do we need to pay CGT once we sell our NZ property before my family come over in Australia with me?
Regards,
Dan
JJ Smith
September 8, 2023 at 10:52 amHi Dan,
Thank you for your comment.
Unfortunately, I am not a financial adviser or accountant, so can only advise from information I have been able to find online.
As you would have read in the post, you will have to pay CGT if you are living in Australia, are a resident for tax purposes and you sell your NZ property:
If you acquired an overseas asset before you became an Australian resident, you are taken to have acquired the asset at the time you became a resident.
However, your accountant can make you a temporary resident for tax purposes, which would make you exempt from tax on your overseas income. Read more here: https://www.beyondaccountancy.com.au/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: https://www.ato.gov.au/individuals/capital-gains-tax/calculating-your-cgt/.
Hope the above helps.
Dave Smith
September 1, 2023 at 12:30 pmThis is exactly the kind of article I’ve been looking for! We’re looking at moving to Australia next year and I’d like to try and purchase a home when we get there (having no luck here!). I’m so happy to read that we can still use our Kiwisaver towards a deposit! Do you know what the value of the FHOG is for WA? We have a couple of schemes here in NZ (https://unitymoney.co.nz/get-a-loan/first-home-loan/first-home-loan-vs-first-home-grant/), but we’re only eligible for up to $5,000. Can someone also please explain stamp duty? From this article, it looks like a one-off payment https://www.yourinvestmentpropertymag.com.au/tax-strategy/a-statebystate-guide-to-stamp-duty. Is that right?
JJ Smith
September 14, 2023 at 12:55 pmHi Dave,
Thank you for your comment and sorry for the delay in replying.
I know, the NZ property market is still crazy expensive, even in the slump it’s in.
The FHOG in Western Australia (WA) is $10,000 and stamp duty is a Government tax.
Simply put, stamp duty is a tax you pay when buying a house. The exact amount depends on the state or territory you live in and the price of the property you’re buying, and sometimes exemptions apply. On average, Australians pay tens of thousands of dollars in stamp duty. That’s on top of the mortgage, deposit and other expenses that come when buying a property.
Here is a good post for you to read which covers WA FHOG, stamp duty and other hidden costs of buying your first home in WA: https://www.ljhooker.com.au/buy/first-home-buyers-guides-for-your-state/first-home-buyers-guide-wa.
Here’s another good stamp duty calculator: https://www.homeloanexperts.com.au/mortgage-calculators/stamp-duty-calculator-wa/.
Hope the above helps.
Jonty
July 15, 2023 at 11:53 amHi there,
I am researching about getting a property over in Australia. I am currently living in NZ and your article on the move says that “If you have moved over and are living in Australia you should be able to buy a property with only a 5% deposit.” Is there a minimum stay period before I get qualified for this?
Kind regards,
Jonty
JJ Smith
July 17, 2023 at 10:27 amHi Jonty,
Thanks for your message.
There is no requirement to have been living in Australia for a period of time before you can get a mortgage and buy property in Australia.
Like NZ, you will need to be able to prove you can service your home loan.
I recommend you read the below if you haven’t already:
– Australian Mortgage – UNO will be able to help you get a mortgage in Australia. You can complete their home loan questionnaire to find out how likely to get a loan right now: https://www.movingtoaustralia.co.nz/australian-mortgage/.
– KiwiSaver for your home deposit: https://www.movingtoaustralia.co.nz/kiwisaver-for-your-home-deposit/.
– Make sure you transfer your money to Australia through an online foreign exchange company like XE, so you get the best rates and no extra fees: 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.
Mike
July 1, 2023 at 7:51 pmHi JJ,
It’s really amazing how your website has all of these relevant information anyone would need when moving from NZ to Aus.
I have a question in regards to properties. We are now in Melbourne (moved last year) and still have a house in New Zealand. We are an Australian resident for tax-purpose so we still don’t have to pay CGT tax in NZ if we sell the house. I believe our NZ house is still considered our main resident/home for 6 years we have been here.
However, with the current housing market in NZ, we are considering of not selling the house and buy a new house here. This means if we now sell the house in the future, we get the CGT.
My question is, do you know of anyone who has a house in NZ and has been living here in Australia for a long time? What are the pros and cons? Do you think the disadvantages outweigh the advantages?
We are just looking for insights. If it is looking bad. We might have to sell our NZ house and meet the current low market in NZ.
Thanks JJ. Any information or guidance is really appreciated.
Kind regards,
Mike
JJ Smith
July 17, 2023 at 1:39 pmHi Mike,
Thanks for your comment and compliment.
Unfortunately, I am not a financial adviser and I cannot advise you any more than the information I have in my buying a house in Australia post.
I recommend you talk to your Australian accountant, or mortgage broker.
However, with the NZ housing market the way it is, it will probably be worth waiting to sell your NZ home, even if you do have to pay CGT down the road.
Sorry, I couldn’t be of more help.
Albina
June 27, 2023 at 9:20 amHi JJ,
Thank you so much for this helpful resource.
We are a family of 4 (with 3-year-old and 1-year-old kids) planning to move from Auckland to Brisbane. If you have time, I’d appreciate it if you can take a look at our current plan and say if that’s doable.
We have just sold our house in Auckland, the settlement date is 31 August.
We plan to move to Brisbane and buy the house there right away (well, maybe rent something like Airbnb, but not long-term).
So we plan to get a mortgage pre-approval asap (already started working with the mortgage brokers, I won’t be able to continue for my company in NZ and it will only be my husband’s NZ-sourced income that will be taken into consideration).
Once we get pre-approval, we’ll start hunting for properties while still being in NZ (should we hire a buying agent)?
We want to find a house to ideally settle in Australia say on the 1st of September (we are able to move the settlement date of our NZ house sale forward so that we have enough time to transfer the money from our NZ bank to AU bank).
We are also looking at moving our Kiwisaver to AuSuper so we can use the funds toward buying a first home in AU, is it doable before we permanently move to AU and within the given timeframe? (we can put our friend’s house address in the application).
We also plan to visit Brisbane soon (we’ve been there before, but now we want to check some particular areas (will have a budget of around 1.1 M and looking at the North Lakes area so when it’s time kids can go to North Lakes College (private), or Thornlands (Thornlands state primary school), visit open homes or book private viewings, visit and join waiting lists at childcare etc).
If you have time, would be great to get your insight!
Have a great day,
Albina
JJ Smith
June 27, 2023 at 12:29 pmHi Albina,
Thanks for your email.
You sound like you have it all sorted! You must have done a decent amount of research already.
Congratulations on selling your home! A lot of my visitors are waiting on the sale of their home before moving.
Regarding using a buyer’s agent, I don’t know anyone who has used one before so can’t comment. All homes will be listed online and it will be great to visit some when you go over to get to know the local housing marketing better. It would be worth meeting with a buyer’s agent while in Brisbane so they can keep the process moving for you.
Make sure you transfer your money through XE. The fees and market rate are so much more competitive than the banks.
Have a read of TelstraSuper’s KiwiSaver post which outlines the process simply. It can take up to 4 weeks for the funds to transfer after approval: https://www.telstrasuper.com.au/products-and-services/joining-telstrasuper/kiwisaver.
I don’t know if AuSuper has an FHSS scheme, so check that before you set up an account with them.
The problem comes in getting ID documents your going to need to set up a super fund account and applying for a TFN (https://www.ato.gov.au/individuals/tax-file-number/apply-for-a-tfn/australian-residents—tfn-application/), which you need for the KiwiSaver transfer. Unfortunately, you won’t have any paperwork with an Australian address on it:
– It’s important your details, such as your name and residential address, match those on your identification documents. If the details don’t match this could delay any future transactions or changes you may wish to make to your account. You will need at least two of the following identity documents – your Medicare Card, Pension Card, Drivers Licence or Passport. We will then check these with our external identity verification provider to verify your identity.
Therefore your main goal should be to get some identification documents with your Australian address on them, even if it is your friend’s temporary address. You should apply for the below ID documents while visiting Australia (sooner than later) then you might have a chance to complete the process before September (https://www.movingtoaustralia.co.nz/documentation-needed-when-moving-to-australia/):
– Commonwealth Bank account (complete before visiting Australia)
– Medicare Card (this might be a stretch, but it will depend on who is processing your application)
– Try to get a mobile plan or something similar, might be a stretch too, as you won’t be able to set up a utility account. A Bank letter will help.
Great that you are planning to visit Brisbane and get the process moving. The earlier you can contact schools etc the better.
September is ambitious, not sure if possible, but you can try…
Please feel free to email me back any further questions you have.
Good luck with your move.
Mark
May 30, 2023 at 3:30 pmWe have the cash to purchase an apartment in Queensland. We want to live 3 to 4 months a year there. Then have it leased as holiday stays. What hoops for extra cost in stamp duty foreign investor ect would we be up for? Thanks
JJ Smith
May 30, 2023 at 3:37 pmHi Mark,
Thanks for your comment.
The best way to save paying extra taxes is to become a non-resident for tax purposes: https://beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
To make this happen you will need an account that knows what they are doing. Therefore either talk to your accountant about it or contact Beyond Accountancy and get them to help you.
You will also be a foreign investor, which is 7% tax.
Make sure you use XE to transfer your money to Australia to save money on FX.
Thanks
Emily
May 13, 2023 at 4:06 pmHi JJ
I’m a Nz citizen and have been living in Sydney for 15yrs ago. Over 6yrs ago I bought a home with my Australian partner.
We are now selling and looking up upsize for our family. Am I eligible for the main residence CGT exemption?
Thank you
Emily
JJ Smith
May 15, 2023 at 11:28 amHi Emily,
Thanks for your comment.
I recommend you use the capital gains tax property exemption tool. If you sold or are going to sell the property (or otherwise dispose of it) this tool helps you work out how much your capital gain tax (CGT) exemption is: https://www.ato.gov.au/Calculators-and-tools/Capital-gains-tax-property-exemption-tool/.
As an NZ citizen, you are generally an Australian resident for tax purposes, unless your accountant has made you a “temporary resident” for tax purposes. This page will help you work out if you are a resident for tax purposes: https://www.ato.gov.au/Individuals/coming-to-australia-or-going-overseas/Your-tax-residency/Australian-resident-for-tax-purposes/.
Please feel free to email me back any further questions you have.
Thanks
Robin
March 11, 2023 at 7:34 pmHello. Is this doable? I’m asking on behalf of my Australian son and NZ daughter in law. They own a house outright in NZ would like to sell and return to Australia to buy there instead. But, prices have dropped considerably in NZ. Is it an option to keep the NZ property, rent it out, return to Australia and borrow against the equity in the NZ property to purchase an Australian property, on consideration that they both have secure employment and can honour the repayments? Which bank allows this, what are the tax implications and anything else that may need to be taken into consideration? Thanks in advance.
JJ Smith
March 13, 2023 at 12:08 pmHi Robin,
Thank you for your comment.
Yes, it is doable and the company to talk to are UNO Home Loans: https://www.movingtoaustralia.co.nz/australian-mortgage/. They know all the rules for New Zealanders buying property in Australia and they can advise how to borrow against the equity of their NZ property.
The main thing to consider is the CGT they would have to pay when they sell their house in New Zealand. However, your accountant can make you a temporary resident for tax purposes, which would make you exempt from tax on their overseas income. Read more here: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
They would be eligible for FHOG if they hadn’t owned property in Australia. They are also now able to move their KiwiSaver to Australia and use some of it towards a deposit: https://www.movingtoaustralia.co.nz/kiwisaver-and-first-home-super-saver/.
Hope the above helped.
Granny Sue
March 8, 2023 at 1:33 pmReally appreciate the knowledge you find and share with all of our questions. My husband and I (sounds like the Queen lol) are planning to sell our home in NZ and purchase a home in WA where 2 of our sons live. We plan to spend half of the year in Australia and half in NZ so that we benefit from contact with all 3 sons, their partners and our grandchildren, and also because I need to return within 26 weeks to continue receiving the NZ pension. How does this impact on FHOG, and determining primary residence? From your fantastic page, I gather we would need to purchase a new build under $750,000. Are you able to clarify the tricky details for me about living in it for at least a year, as I will be absent for part of that time. I do hope around ANZAC Day Mr Albanese (as hinted) says come over and we will pay your pension, then we will be in the one country.
JJ Smith
March 10, 2023 at 11:24 amHi Granny Sue,
Thank you for your comment.
Yours is not a straightforward question and I can’t confirm exactly how only living in Australia for less than half a year will impact you being able to get the FHOG.
You (or at least one applicant) must occupy the home as your PPR for at least 12 months, commencing within 12 months of settlement or completion of construction. If you plan on leaving it vacant when you are not in Australia then this may be alright, but you would want to confirm this with your lawyer or conveyancer.
Did you know you are eligible for the Australian pension if you are over 66.5 years (https://www.movingtoaustralia.co.nz/australian-age-pension/)?
I have had a similar question regarding receiving a pension and living close to 50/50 in each country. My advice for this is you must inform Work and Income of your plans – https://www.workandincome.govt.nz/pensions/travelling-or-moving/going-overseas-super/index.html.
Please feel free to email me back any further questions you have.
Good luck with your move.
Mel
May 7, 2023 at 6:43 pmHey, not sure if you know but in nz there is a portable pension that alot of people don’t know about… this means you don’t have to come back every six months and stay gor six months.. just ho in and ask.. they will try and talk you out of it but if you want that freedom its worth it
JJ Smith
May 11, 2023 at 9:33 amHi Mel,
Thank you so much for your comment.
I haven’t heard about the portable pension before. Are you able to send me more information on this?
All the information I can find online says that the portable pension is between NZ and 22 Pacific countries that Australia is not part of. Here is what I’ve been able to find:
Special Portability Arrangement: Payment may be made at a rate between 50 percent and 100 per cent where a superannuitant intends to live for 52 weeks or more in one of 22 specified Pacific countries. The actual rate paid depends on the superannuants residence in New Zealand over a 20-year time frame. A superannuitant must be resident and present in New Zealand when they apply to take payment of New Zealand Superannuation to one of the specified Pacific countries.
Payment Overseas (General Portability): Payment may be made at the flat rate of 50 per cent where a person intends to live in an overseas country with which New Zealand does not have a social security agreement or a Pacific country covered by the special portability Arrangement. A superannuitant must be ordinarily resident and present in New Zealand when they apply to take payment of New Zealand Superannuation overseas.
Any information you can give me that I can fact-test and pass on to my visitors would be greatly appreciated.
Thanks
John Michael
February 26, 2023 at 11:43 amHi
Hoping you might have some advice on this. Our son and his partner are moving to Melbourne in three months from NZ. We are looking to buy an apartment for them to move into and then move in ourselves when we come over in two years. If we were in Melbourne at the time of purchase/settlement would we still have to pay the foreign buyer property tax?
JJ Smith
February 27, 2023 at 11:52 amHi John,
Thank you for your comment.
I’m not 100% sure, unfortunately. I believe if you are in Australia at the time of settlement you will not have to pay foreign buyer tax as you will have your SCV. However, as you will be moving straight back to NZ you might have to.
There may also be other areas you will end up having to pay Australian tax, e.g. Capital Gains Tax when you sell your NZ home and Stamp Duty as the Australian property won’t be your primary residence.
I recommend you get in touch with someone who specializes in property law in Melbourne (either a lawyer or conveyancer) so that you know exactly what costs are going to be involved with you purchasing Australia property: https://www.google.com/search?q=melbourne+property+lawyers&client=firefox-b-d&ei=3-D7Y7zYONeG3LUPkMGVmAw&oq=melbourne+property+law&gs_lcp=Cgxnd3Mtd2l6LXNlcnAQAxgAMgcIABANEIAEMgQIABAeMgsIABAFEAcQHhDxBDIJCAAQCBAeEPEEMgkIABAIEB4Q8QQyBggAEAgQHjIJCAAQCBAeEPEEMgkIABAIEB4Q8QQyCQgAEAgQHhDxBDIJCAAQCBAeEPEEOgoIABBHENYEELADOgYIABAHEB46CQgAEAcQHhDxBDoLCAAQCBAHEB4Q8QQ6CAgAEAgQBxAeSgQIQRgAUIcSWPUiYKUuaAJwAXgAgAHbAYgB4AySAQUwLjguMZgBAKABAcgBCMABAQ&sclient=gws-wiz-serp.
Sorry I could not be of more help.
Neelam
December 1, 2022 at 11:17 pmHi JJ
How are you? I am amazed to find such a helpful site for anyone who wants to move to Australia. It’s awesome. I have compared the second-hand cars are a bit pricy in Australia. Would it be any import duty we have to pay if we take our car from NZ?
JJ Smith
December 2, 2022 at 12:42 pmHi Neelam,
Thank you for your comment and compliment.
Yes, you do have to pay import duty. You can find out how much by getting a quote from AutoHub: https://www.autohub.co/import-car-nz-to-australia-shipping/.
Always great to make an educated decision.
Please feel free to email me back any further questions you have.
Good luck with your move.
Abhishek Thapliyal
September 9, 2022 at 8:21 pmHi,
Firstly, thank you for this website. It answers a lot of our queries regarding moving to australia.
I was just wondering how hard is it to get a home loan in Australia if we have investment properties in New Zealand? Will the banks check how much our remaining loan is on the investment properties or is home loan affordability/how much we can get purely based on what our financials are in Australia?
Thanks
JJ Smith
September 12, 2022 at 11:16 amHi Abhishek,
Thank you for your comment.
Unfortunately, I am not a financial adviser and cannot give you advice on this.
I recommend you ask this question to UNO home loans. You can do this by completing their home loan questionnaire and then booking a time to speak to an UNO representative: https://www.movingtoaustralia.co.nz/australian-mortgage/.
UNO know all the rules and requirements for New Zealanders moving to Australia and are qualified to advise you.
Please feel free to email me back any further questions you have.
Good luck with your move.
A Jiang
September 8, 2022 at 5:22 pmHi JJ, I’m an NZ citizen and don’t have an Australian PR. I moved to Melbourne from NZ two months ago. I own and lived in a house in NZ. I heard there is a rule saying that if I am not selling my NZ house within a year, I need to pay capital gain tax to the Australian govt if I sell it after one year. Is this true even though I am an SCV holder? And I don’t think I am going to apply for Australian PR in near future. I cannot find the web link to explain this one-year rule. Can you pls indicate the link? What if I am not selling the house after 1 year, but no one lives there? (if I go back to NZ for holiday I still stay in my house, I don’t have a second property in anywhere, I am renting in Australia).
JJ Smith
September 12, 2022 at 11:23 amHi A Jiang,
Thank you for your comment.
I have not heard of this one year rule, from my research as soon as you are living in Australia you are considered an Australian resident for tax purposes.
If you want to avoid paying capital gains tax (CGT) on your NZ investments you will need your Australian accountant to make you a temporary resident for tax purposes, which would make you exempt from tax on your overseas income. Read more here: https://www.beyondaccountancy.com.au/something-every-kiwi-in-australia-needs-to-know/.
I hope the above helps.
Ingrid
August 23, 2022 at 9:30 amHi JJ
I am wanting to purchase a apartment in Queensland. Completion and settlement won’t be for 3 years. I am currently a nz citizen living in NZ but by the time it comes to the settlement of the apartment I will be working and living in Australia. So at settlement I will have a SCV. I traveled to Australia a few weeks ago to pursue some work opportunities and will be continuing to travel back and forth to get these off the ground. I will ultimately be setting up a company, hiring staff and paying taxes well before the settlement of the apartment I wish to purchase. My question is if I sign up a contract when I’m next in Australia and by the time it comes to settlement I am living and working in Australia will I be liable for AFAD or not. Thank you for your time as I am unable to find the answer to this.
JJ Smith
August 23, 2022 at 3:25 pmHi Ingrid,
Thank you for your comment.
Below is an extract from Norton Rose Fulbright’s post ‘Foreign buyers to pay duty surcharge in Queensland: Real estate implications’.
AFAD will apply to acquisitions by foreign acquirers of AFAD residential land, which is land that will be primarily used for residential purposes – the legislation uses the concept of a building “designed or approved by a local government for human habitation by a single family unit” or a lot that will comprise such a building or part of a building.
AFAD will apply to a number of transaction scenarios. For example, transactions involving:
– Established housing.
– Vacant land on which a house will be built.
– Land to be refurbished, renovated or extended so it becomes residential.
– Existing apartments.
– A lot that will contain an apartment or other dwelling where the title is still to be created by subdivision – (i.e. sold off the plan, including during construction).
– A lot which has been created but the dwelling is still to be finished at the time of contract.
Are purchases of development sites caught?
Yes. AFAD will be payable not only on purchases of proposed or completed dwellings but also on development site acquisitions. AFAD residential land includes land on which the foreign acquirer is undertaking or will undertake the development of the land so it becomes land on which houses or apartments are built.
Source: https://www.nortonrosefulbright.com/en/knowledge/publications/51f051b3/foreign-buyers-to-pay-duty-surcharge-in-queensland-real-estate-implications.
Will you require an Australian mortgage? I’m not a specialist in the area, and I know UNO would be able to help you: https://www.movingtoaustralia.co.nz/australian-mortgage/.
You can fill in their home loan questionnaire and book in a time to talk to a UNO representative.
Please feel free to email me back any further questions you have.
Good luck with your move.
Bhavna Gidwani
July 28, 2022 at 6:32 pmHi there,
We are planning to move to Australia Melbourne so have this question below was wondering if you can assist..
Will I be eligible for first home grant in Australia if I own a property in Nz?
JJ Smith
July 29, 2022 at 11:26 amHi Bhavna,
Thank you for your comment.
FHOG does not take into consideration NZ property, only property you’ve owned in Australia.
This post goes into it in more detail: https://www.movingtoaustralia.co.nz/are-new-zealand-citizens-eligible-for-australias-first-home-owners-grant/.
I’ve just re-read my posts and realised I haven’t stated this, so thank you very much for your comment. I have now updated my posts.
Please feel free to email me back any further questions you have.
Good luck with your move.