Australia New Zealand Citizens Tax Guide
Australian tax rules for New Zealand citizens. The guide covers: the New Zealand citizens in Australia — the 'New Zealand citizens' who 'live in Australia' are 'Australian residents for the tax purposes' — the 'NZ citizens are 'taxed on the worldwide income' in Australia'; the 'NZ citizens' can 'live and the work in Australia' under the 'Special Category Visa (the 'SCV' — the 'Subclass 444')' (the 'SCV' is the 'temporary visa' that 'allows the NZ citizens to stay in Australia indefinitely'); the 'NZ citizens who arrived after the '26 February 2001' are the 'temporary residents' for the 'social security purposes' (the 'NZ citizens do NOT have the 'automatic access to the Australian social security payments'); the 'NZ citizens who arrived before the '26 February 2001' are the 'Australian permanent residents' for the 'social security purposes'; the NZ citizens as the Australian residents for the tax — the 'NZ citizens are 'taxed as the Australian residents' on the 'worldwide income' (the 'income from all sources' — the 'Australian income' and the 'New Zealand income'); the 'NZ citizens who are the 'temporary residents' are 'taxed on the Australian-source income' only (the 'foreign income is exempt' for the 'temporary residents'); the 'NZ citizens must 'lodge the Australian tax return' and 'report the worldwide income'; the 'NZ citizens can claim the 'Foreign Income Tax Offset (the 'FITO')' for the 'tax paid in New Zealand' on the 'NZ income'; the superannuation portability between the AU and the NZ — the 'Trans-Tasman superannuation portability' allows the 'NZ citizens who move to Australia' to 'transfer the NZ KiwiSaver to the Australian super fund' (the 'portability of the super between Australia and New Zealand'); the 'NZ citizens who 'leave Australia' can 'claim the Departing Australia Superannuation Payment (the 'DASP')' if the 'NZ citizen is the 'temporary resident''; the 'NZ citizens who are the 'Australian permanent residents' can 'transfer the Australian super to the NZ KiwiSaver' under the 'Trans-Tasman portability'; the CGT on the property for the NZ citizens — the 'NZ citizens who 'own the property in Australia' are 'subject to the CGT on the sale of the property' (the 'main residence exemption' applies if the 'property is the principal residence'); the 'NZ citizens who 'own the property in New Zealand' are 'subject to the CGT in Australia' (the 'Australian residents are taxed on the worldwide capital gains'); the 'NZ citizens may be 'eligible for the 50% CGT discount' if the 'asset was held for at least 12 months'.
NZ Citizens in Australia
- Special Category Visa (SCV): The 'Subclass 444' 'allows the NZ citizens to live and work in Australia indefinitely'.
- Taxed as Australian residents: The 'NZ citizens are 'taxed on the worldwide income' in Australia.
- Temporary residents (post-2001): The 'NZ citizens arriving after 26 Feb 2001' are the 'temporary residents for the social security'.
For the moving to Australia and the residency rules, see our Moving to Australia Guide →.
Super Portability
- NZ KiwiSaver to AU super: The 'NZ citizens can transfer the KiwiSaver to the Australian super fund'.
- AU super to NZ KiwiSaver: The 'permanent residents can transfer the Australian super to the KiwiSaver'.
- DASP for NZ citizens: The 'NZ citizens who leave Australia can claim the DASP'.
For the DASP and the leaving Australia procedures, see our Leaving Australia Guide →.