Moving to or from New Zealand

Tradie Business Setup

Electrician starting business in Sydney

1. Expected revenue: $90,000 (inc GST)
2. Above $75,000 threshold → Must register
3. Revenue ex-GST: $90,000 ÷ 1.1 = $81,818
4. GST to collect: $8,182

The same calculation on its own, with others like it

Online Retailer

E-commerce store selling to Australians

1. GST on sales: $4,000
2. GST on purchases: $2,200
3. Net payable: $1,800

The same calculation on its own, with others like it

Cafe Mixed Supplies

Melbourne cafe with dine-in and takeaway

This one turns on the rules rather than on a calculation, so there are no sums to show.

Property Developer

Developer building new apartments

1. Sale price: $660,000 (inc GST)
2. Price ex-GST: $660,000 ÷ 1.1 = $600,000
3. GST collected: $60,000

The same calculation on its own, with others like it

Priya - a bank margin versus a specialist on $5,000

Priya is sending NZD 5,000 to family in the United States. At the mid-market rate of 0.6000, that is worth USD 3,000. She compares her bank against a specialist transfer service.

1. Rate offered: 0.6000 less 2.5% = 0.5850
2. Amount received: 5,000 x 0.5850 = USD 2,925.00
3. Plus a NZD 15 telegraphic transfer fee

Landed: USD 2,925.00, and she also pays NZD 15

The same calculation on its own, with others like it

Sam - the zero-fee-but-bad-rate trap

Sam is sending NZD 3,000, worth USD 1,800 at mid-market. Provider A advertises a zero transfer fee. Provider B charges a NZD 10 fee. The fee alone makes Provider A look cheaper.

1. Rate offered: 0.6000 less 3% = 0.5820
2. Amount received: 3,000 x 0.5820 = USD 1,746.00

Landed: USD 1,746.00, with no fee shown

The same calculation on its own, with others like it

The Nguyen family - a large transfer where the margin dominates

The Nguyen family is sending NZD 100,000 to buy a property deposit overseas, worth USD 60,000 at mid-market. Both options charge the same NZD 20 fee, so the fee is not the deciding factor.

1. Rate offered: 0.6000 less 2% = 0.5880
2. Amount received: 100,000 x 0.5880 = USD 58,800
3. Margin cost: 60,000 less 58,800 = USD 1,200, about NZD 2,000

Landed: USD 58,800, plus a NZD 20 fee

The same calculation on its own, with others like it

Liam - a small transfer where the flat fee dominates

Liam is sending just NZD 200 to a friend, worth USD 120 at mid-market. He compares a provider with a high fixed fee against one with a low fixed fee, where the fee is deducted before conversion.

1. After the NZD 25 fee: 200 less 25 = NZD 175 to convert
2. Rate offered: 0.6000 less 0.5% = 0.5970
3. Amount received: 175 x 0.5970 = USD 104.48

Landed: USD 104.48. The fee alone was 12.5% of the transfer

The same calculation on its own, with others like it

Liam - a new arrival using the transitional-resident exemption

Liam moves from Sydney to Auckland and becomes a New Zealand tax resident. He has not been a New Zealand tax resident for over 10 years and has never been a transitional resident, so he qualifies. He takes a job here paying $85,000 (M code) and still receives about A$8,000 a year in Australian share dividends and A$12,000 a year in net rent from an Australian property.

1. New Zealand salary, $85,000 (taxed as normal):
2. First $15,600 @ 10.5% = $1,638
3. Next $37,900 @ 17.5% = $6,633
4. Next $24,600 @ 30% = $7,380
5. Next $6,900 @ 33% = $2,277
6. Total PAYE: $17,928
7. ACC earners levy: $85,000 × 1.75% = $1,488

Net local pay: $85,000 − $17,928 − $1,488 = $65,584

The same calculation on its own, with others like it

Sarah - transferring an Australian super balance to KiwiSaver

Sarah has permanently emigrated to New Zealand and decides to move her Australian super balance of about A$60,000 into her KiwiSaver account under trans-Tasman portability.

1. She opens a KiwiSaver account first (the money can only go into KiwiSaver)
2. Her Australian fund transfers about A$60,000, converted to New Zealand dollars on entry
3. The amount enters KiwiSaver free of entry tax
4. The Australian-sourced portion keeps Australian rules inside KiwiSaver

She can access that portion from age 60, but not for a first home

The same calculation on its own, with others like it

Ben - a currency-transfer cost example (illustrative)

Ben moves A$50,000 of savings to New Zealand. The rates below are illustrative, used only to show how the cost is made up, not current market rates.

1. Mid-market reference (illustrative 1 AUD = 1.10 NZD):
2. A$50,000 × 1.10 = NZ$55,000 (the "true rate" benchmark)
3. Option A, a bank (illustrative rate 1.06, $20 fee):
4. A$50,000 × 1.06 = NZ$53,000, less $20 = NZ$52,980
5. Cost versus mid-market: $55,000 − $52,980 = $2,020
6. Option B, a specialist service (illustrative rate 1.093, $8 fee):
7. A$50,000 × 1.093 = NZ$54,650, less $8 = NZ$54,642
8. Cost versus mid-market: $55,000 − $54,642 = $358

Comparing providers saves about $2,020 − $358 = $1,662 on this one transfer

The same calculation on its own, with others like it

Emma - setting the right tax code on her first New Zealand job

Emma, an Australian citizen now living in Wellington, starts her first New Zealand job on $70,000. It is her only job and she has no New Zealand student loan, so she uses the M code on her IR330.

1. PAYE on $70,000 (M code):
2. First $15,600 @ 10.5% = $1,638
3. Next $37,900 @ 17.5% = $6,633
4. Next $16,500 @ 30% = $4,950
5. Total PAYE: $13,221
6. ACC earners levy: $70,000 × 1.75% = $1,225

Net pay: $70,000 − $13,221 − $1,225 = $55,554 (about $4,630 a month)

The same calculation on its own, with others like it

Priya starts work: the cost of not having an IRD number

Priya arrives on a skilled work visa and starts a $70,000 job. Her IRD number has not come through, so she has not given her employer an IR330. Her employer must use the no-notification rate.

1. $70,000 × 45% = $31,500 deducted for the year

The same calculation on its own, with others like it

The Chen family and the transitional resident exemption

The Chens move from Singapore and become New Zealand tax residents. They had not lived in New Zealand in the previous 10 years, so they qualify as transitional residents. They keep an overseas rental property earning $24,000 a year and overseas shares paying $6,000 in dividends. Their New Zealand salary sits in the 33% tax band.

1. Overseas rent: $24,000
2. Overseas dividends: $6,000
3. Total foreign income exempt: $30,000 a year
4. Tax avoided at their 33% marginal rate: $30,000 × 33% = $9,900 a year

Over the full up to 48 month window: about $9,900 × 4 = $39,600

The same calculation on its own, with others like it

Tomas joins KiwiSaver on a resident visa

Tomas holds a residence class visa and earns $60,000. Because he is entitled to live here indefinitely, he can join KiwiSaver, and he is automatically enrolled when he starts his job at the default 3.5% rate.

1. His own contribution: $60,000 × 3.5% = $2,100
2. Employer contribution: $60,000 × 3.5% = $2,100 (employer superannuation contribution tax is deducted from this)
3. Government contribution: his own contribution is above $1,042.86, so he gets the maximum $260.72

Into his account: about $2,100 + $2,100 + $260.72 = $4,460.72 for $2,100 of his own money

The same calculation on its own, with others like it

The Okafor family: Working for Families and healthcare timing

The Okafors arrive on residence class visas with two young children. They want to know when they can claim Working for Families and when they can use public healthcare.

1. Caregiver test: resident and present in New Zealand continuously for 12 months, and a New Zealand tax resident for the period claimed
2. Children test: both resident and present in New Zealand

As new residents they generally qualify once they have been here continuously for 12 months, or sooner if the children already meet the residence test

The same calculation on its own, with others like it

Jade - fruit picker with no IRD number yet

Jade starts picking fruit and earns $1,200 gross in her first week. Her IRD number has not arrived, so she cannot give her employer a tax code. The employer must apply the no-notification rate.

1. Without an IRD number (45% no-notification rate):
2. Tax deducted: $1,200 × 45% = $540
3. Once she gives her IRD number and an M code:
4. On $1,200 a week (about $62,400 a year), weekly PAYE is roughly $210
5. ACC earners levy: $1,200 × 1.75% = $21 (deducted either way)

Take-home on the correct code: $1,200 − $210 − $21 = $969

The same calculation on its own, with others like it

Tom - a summer season in hospitality

Tom works a summer season in Queenstown hospitality. Over the tax year he earns $32,000, all on the M code, as it is his only New Zealand job.

1. PAYE on $32,000:
2. First $15,600 @ 10.5% = $1,638
3. Next $16,400 @ 17.5% = $2,870
4. Total PAYE: $4,508
5. ACC earners levy:
6. $32,000 × 1.75% = $560

Total deductions: $5,068. Net income: $32,000 − $5,068 = $26,932

The same calculation on its own, with others like it

Maria - leaving New Zealand part way through the year

Maria works from April to July, four months, earning $6,000 gross a month, so $24,000 in total, then flies home. Her employer deducted PAYE each pay as if she would earn $6,000 every month all year, an annual rate of $72,000.

1. PAYE deducted (based on a $72,000 annual rate):
2. Annual PAYE on $72,000 would be $13,820, so about $1,152 a month
3. Over 4 months: 4 × $1,152 = $4,607 deducted
4. Correct tax on her actual $24,000:
5. First $15,600 @ 10.5% = $1,638
6. Next $8,400 @ 17.5% = $1,470
7. Correct PAYE: $3,108

Refund due: $4,607 − $3,108 = $1,499

The same calculation on its own, with others like it

Priya - a main job plus a second job

Priya has a main cafe job paying $35,000 a year on the M code, and picks up a weekend bar job paying $12,000 a year. Her total income is $47,000, which sits inside the $15,601 to $53,500 band, so her second job uses the S code at 17.5%.

1. Main job, $35,000 (M code):
2. First $15,600 @ 10.5% = $1,638
3. Next $19,400 @ 17.5% = $3,395
4. PAYE: $5,033
5. Second job, $12,000 (S code, 17.5%):
6. $12,000 × 17.5% = $2,100

Combined PAYE: $5,033 + $2,100 = $7,133

The same calculation on its own, with others like it