Working in a different country can be an exciting experience, but it can also be quite a headache, particularly when it comes to tax liabilities. If you’re an Australian heading to New Zealand to work or working for an employer remotely, there are some key things you’ll want to know about how the tax system down under works, what rates will apply, and how to ensure you don’t end up having to pay tax on the same income both in Australia and New Zealand. In this article, we’ll cover everything you need to know to calculate tax accurately and stay compliant.
Understanding Tax Residency in New Zealand
Before we begin with tax, we need to identify whether you are a New Zealand resident or not. Residency for tax purposes is not the same as your immigration status. In New Zealand, you are considered a tax resident if:
- You have spent at least 183 days in New Zealand in any 12-month period.
- You have a “permanent place of abode” in New Zealand — a home or dwelling at which you normally live.
If you are a resident for tax purposes, you are taxed on your worldwide income, including income from Australia. You pay only tax on the income you earn in New Zealand if you are a non-resident.
Tax for Australians working in New Zealand
New Zealand has a progressive tax system; the more you earn, the higher the percentage of your earnings you give to the government. Here’s the breakdown of the current tax rates for individuals:
| Income Bracket (NZD) | Tax Rate |
| $0 – $14,000 | 10.5% |
| $14,001 – $48,000 | 17.5% |
| $48,001 – $70,000 | 30% |
| $70,001 – $180,000 | 33% |
| Over $180,000 | 39% |
On top of income tax, there is a 1.67 per cent ACC (Accident Compensation Corporation) Levy that is restricted to a pay amount of $152,790 during the 2025 tax year.
Double Tax Agreement (DTA) with Australia and New Zealand
Australia and New Zealand share a Double Taxation Agreement (DTA) so that you are not double taxed on the same income. If you are a legal resident for tax purposes in each of those countries, then you should be deciding where tax is due under the DTA. Generally, you pay tax in the country where the income is earned, and rebates can be claimed for tax paid in the other country.
You may need to fill out paperwork, such as the IR330 in the case of New Zealand, and provide evidence of your Australian tax residency, to be able to claim the DTA.
Here’s an example at a glance to help explain how to calculate your tax:
Let us assume you make NZD 65,000 per year working in New Zealand, your breakdown of taxes is as follows:
- The first $14,000 at 10.5% = $1,470
- The next $34,000 ($48,000 – $14,000) at 17.5% = $5,950
- The next $17,000 ($65,000 – $48,000) at 30% = $5,100
Total Income Tax Payable: $12,520
Next, add the ACC levy of 1.67%, which is $1,085.50 for $65,000 of earnings.
Total Tax Payable: $13,605.50
Most of the time, you can claim credits for having overpaid or credits for being entitled to tax relief through an annual tax return.
Tax Returns for Self-Employed Aussies in New Zealand
Your tax obligations are slightly different if you are self-employed while working in New Zealand. Self-employed people must handle their income taxes as well as GST if they fall into that category. Income tax is paid through provisional tax periods spread out over the year, and you must be registered for GST if your income exceeds $60,000 per year.
It’s important to keep accurate records of your income and expenses, as they are critical for tax calculations as well as potential deductions. Although filing is typically done on an annual basis, provisional tax is typically paid in 3 or 4 equal instalments to make it simpler to manage for you working in both countries, depending on the type of business and cash flow. It’s best to use accounting software or consult a tax professional to ensure compliance and proper reporting.
Filing your New Zealand tax return
Taxes are usually filed at the end of a fiscal year, which is from 1 April to 31 March in New Zealand. You can submit your tax return on the Inland Revenue Department (IRD)’s MyIR service.
Make sure to:
- Maintain good income and expense records.
- And if you are a tax resident, report any foreign income.
- Take any tax credits or exemptions that you are due.
Conclusion
In many ways, working in New Zealand as an Aussie can be rewarding, but knowing your tax obligations here is important to avoid any nasty surprises. With the help of the DTA, you can remain in compliance and avoid double taxation. As always, check with a tax adviser if you have any questions about your situation.
By making proper planning and knowledge of tax obligations, Aussies working in NZ can manage their finances effectively and avoid unwanted fines. Staying informed and up-to-date with New Zealand’s tax laws will ensure a smooth experience while you work and live abroad.
If you want to calculate tax automatically, you can try our NZ PAYE Calculator to help you out!
