Moving to New Zealand from Australia: A Financial Guide for Australian Expats

Moving to New Zealand from Australia is a common choice for Australians seeking lifestyle changes, career opportunities or family connections overseas. While the relationship between Australia and New Zealand makes the move relatively easy from an immigration perspective, the financial implications are often more complex than people expect.

Understanding how the two financial systems interact is essential to avoiding unnecessary tax, missed entitlements or long-term planning issues when moving to New Zealand from Australia.

Residency and Employment Framework

One of the defining features of moving to New Zealand from Australia is the ability to live and work in New Zealand indefinitely under the Trans-Tasman Travel Arrangements. Australians generally receive a resident visa on arrival, allowing them to work without restriction.

Despite this flexibility, your employment structure may change in the future. Income tax rates, payroll deductions and employment benefits differ from Australia. It is important to understand how your salary will be taxed in New Zealand and how this affects your take-home pay and cash flow.

Tax Residency and Ongoing Australian Obligations

Tax residency is a central issue when moving to New Zealand from Australia. Tax residency in New Zealand is determined by meeting either of the following tests:

• Permanent place of abode: Persons are deemed residents of New Zealand if they have a permanent place of abode in New Zealand, regardless of how long they have been outside of New Zealand.

• 183 days’ presence: Persons are deemed residents of New Zealand from the date of their arrival in New Zealand if they are personally present in New Zealand for a period or periods exceeding, in total, 183 days in any 12-month period.

A double tax agreement exists between Australia and New Zealand, which can help reduce the risk of being taxed twice, but it does not remove the need for careful structuring and accurate reporting. Australia may also continue to tax certain income streams depending on your residency status under Australian tax law.

Once you become a New Zealand tax resident, your worldwide income may be taxable in New Zealand by the Inland Revenue Department (IRD). However, an exemption may apply under the transitional tax resident rules, preventing your foreign-sourced income from being taxed during the first 4 years in New Zealand.

Who is a Transitional Tax Resident?

Transitional tax residents in New Zealand can be temporarily exempt from paying tax on most types of overseas income. You are a transitional tax resident if you:

• are a new migrant or New Zealander returning home;

• qualified as a New Zealand tax resident on or after 1 April 2006; and

• were not a tax resident at any time in the 10 years before you qualified.

You are automatically entitled to the exemption if you are eligible, and you can only get the exemption once.

Transitional residents receive a temporary exemption from paying NZ tax on most foreign‑sourced income for up to 4 years, including rental income from overseas, and overseas interest and dividends. The exemption generally starts from the date you become a tax resident in NZ or the time you establish your permanent place of abode in NZ.

Some types of income, such as foreign-sourced employment or services income, remain taxable in New Zealand, even during the exemption.

KiwiSaver Explained for Australians

KiwiSaver operates differently from Australian super and is closely linked to employment. Australians moving to New Zealand from Australia can usually join KiwiSaver through their employer.

Some of the key benefits include:

• Government Contributions: Eligible members can receive an annual government contribution, which effectively boosts your savings for free.

• Employer Contributions: Employers are required to contribute at least 3% of your salary, adding another layer of growth to your KiwiSaver balance.

• Tax Advantages: Investment earnings within KiwiSaver are taxed at a lower rate, helping your savings grow faster.

• Flexible Savings Options:  You can choose how much to contribute (3%, 4%, 6%, 8%, or 10% of your income) and select from different investment funds based on your risk preference.

• Support for First-Home Buyers: KiwiSaver funds can be used to buy your first home after at least three years of membership.

Australians are not always eligible for government contributions or first-home benefits. Understanding what you can and cannot access helps you to decide whether KiwiSaver is appropriate as part of your overall retirement strategy. KiwiSaver should be considered alongside your Australian super rather than viewed as a replacement.

Superannuation and Cross-Border Retirement Planning

Superannuation planning for Expats is often overlooked when moving to New Zealand from Australia. Australian superannuation generally cannot be accessed earlier, simply because you move overseas.

Most Australians keep their super in Australia until they meet a condition of release, such as reaching their retirement age. This creates a need for coordinated investment management across countries, particularly where currency exposure and asset allocation are concerned.

If you have joined KiwiSaver, the Trans-Tasman Retirement Savings Portability scheme between Australia and New Zealand allows you to transfer your retirement savings between Australia and New Zealand when you move from one country to the other.

Decisions around additional contributions, consolidation of funds and investment options should be reviewed in light of your new residency and long-term retirement plans.

Property Ownership and Investment Considerations

Property decisions can have long-lasting consequences when moving to New Zealand from Australia. Retaining Australian property as an investment may provide ongoing income, but it also brings Australian tax obligations and reporting requirements in New Zealand.

Selling property before or after the move can trigger capital gains tax in Australia, depending on timing and usage. New Zealand also has specific rules around the taxation of overseas assets and income.

Planning property decisions in advance can help manage cash flow, tax exposure and future flexibility.

Banking, Currency and Cash Flow Management

Managing finances across two currencies is a practical challenge when moving to New Zealand from Australia. Exchange rate movements can affect loan balances, savings and regular transfers between countries.

Many Australians choose to maintain bank accounts in both Australia and New Zealand. This can simplify bill payments and income management, but requires careful tracking to avoid unnecessary fees and ensure accurate tax reporting.

Currency exposure should be considered as part of your broader investment strategy, particularly for long-term savings and retirement funds.

Estate Planning and Legal Alignment

Estate planning is an essential but often neglected part of moving to New Zealand from Australia. Legal systems differ, and documents prepared in Australia may not fully address your New Zealand assets or family circumstances.

Reviewing your Will, Powers of Attorney and super beneficiary nominations can help ensure your estate plan remains effective and aligned with your intentions. This is especially important where assets and dependents are spread across both countries.

Conclusion

Moving to New Zealand from Australia offers many advantages, but the financial transition requires informed decision-making. Tax residency, KiwiSaver, superannuation, property, and estate planning all interact across two jurisdictions.

Taking an educational and proactive approach, supported by advice from a Financial Adviser experienced in cross-border matters, can help you make confident choices and protect your financial future while living in New Zealand.

Runway Wealth Management is the trusted Financial Adviser to the Australian Expat community. Our tailored advice is backed by expertise, education and experience, which allows us to be at the forefront of Australian Expat Financial Planning.

If you would like to speak to one of our Expat Financial Advisers about this blog or if you have other queries, we would be more than happy to speak with you. Feel free to send us an enquiry through the ‘Contact Us’ tab provided in the link below:

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General Advice Disclaimer: The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances, and objectives. We recommend you obtain professional financial advice specific to your circumstances.