Short term work in NZ for Aussie - any gotchas

[VPS]

Thinking about taking a short term contract in NZ and will probably have to be paid in NZ dollars. Any feedback on opening bank accounts in NZ for Australians. Any interesting facts about tax that I should know about and any other information would be appreciated.

 

[burmans]

Tax rates in NZ are well below Australia, top tax rate only 33%

Money & Taxes in New Zealand | New Zealand Now

 

[OZDUCK]

Tax rates in NZ are well below Australia, top tax rate only 33%

Money & Taxes in New Zealand | New Zealand Now

I do note that in the table linked to your post you pay tax at 10.5% on the first NZ$14,000 of income while in Australia the first A$18,200 is Tax Free.There are tax credits for low income earners but I don't know how they work..

Doing a quick calculation it seems to me that on a salary of NZ$100,000 you would pay about $2,200 less tax here. As the salary gets higher then the lower top NZ rate really comes into play. Of course there is still the Medicare Levy but in NZ you will have to pay the, lower, Accident Compensation Levy - which seems to be a good scheme.

However, the GST rate in NZ is 15%.and there seem to be far less GST free items.

 

[cambriamarsh]

The tax issues can be complex, strongly suggest you have a word with your accountant and if you don’t have one you should find one. I expect eg the taxes paid inNZ are claimable against your AU Tax but the NZ income also needs to be returned in AU. Good luck

 

[ric_melb]

The tax issues can be complex, strongly suggest you have a word with your accountant and if you don’t have one you should find one. I expect eg the taxes paid inNZ are claimable against your AU Tax but the NZ income also needs to be returned in AU. Good luck

Strongly agree with cambriamarsh - see your accountant.

 

[VPS]

Thanks for the responses - waiting for my accountant to come back from his summer break!!