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New Zealand Trans-Tasman work-stay deep dive for Australians

Australians do not need a working holiday visa to live and work in New Zealand. This deep-dive covers 2025-26 PAYE tax tables, IRD number application, KiwiSaver, typical ski-resort and hospitality pay, and the most common mistakes Aussies make.

Australia and New Zealand have the closest immigration relationship in the world, but the tax, banking and superannuation systems are still separate. An Aussie can arrive in NZ, start work the same week, and stay forever. This page covers what to set up, what tax you actually pay, the jobs that hire Aussie arrivals, and the mistakes that cost the typical new arrival.

This is general information only, not migration, financial or tax advice. Check the live source pages before relying on figures here.

NZ income-tax bands (2025-26 tax year)

The NZ tax year runs 1 April to 31 March. NZ has no equivalent of the Australian tax-free threshold; tax starts from the first dollar.

Band Income (NZD) Rate
1 0 to 15,600 10.5%
2 15,601 to 53,500 17.5%
3 53,501 to 78,100 30%
4 78,101 to 180,000 33%
5 180,001+ 39%

The Earner's Levy of 1.6 per cent is added for ACC (the national accident-compensation scheme) on the first NZD 152,790 of earnings.

A typical hospitality worker earning NZD 50,000 a year pays roughly:

  • Income tax: about NZD 8,000
  • ACC Earner's Levy: about NZD 800

Net take-home is about NZD 41,200 (around AUD 38,500 at NZD 1 = AUD 0.93).

Source: IRD tax rates for individuals.

Minimum wage

The NZ adult minimum wage is NZD 23.95 an hour from 1 April 2026. The starting-out and training minimum wages are NZD 19.16 (80 per cent of the adult rate); the starting-out rate applies to some 16 to 19 year olds, such as 16 and 17 year olds in their first six months with an employer. Pay above the minimum depends on the employer and the job.

Source: Employment New Zealand minimum wage.

IRD number application timeline

The IRD number is your NZ tax file number. Apply as soon as you have a NZ address.

  1. Week 1: Apply online at IRD numbers for individuals. You will need your Australian passport, a NZ residential address (a hostel works), and proof of identity. Aussie arrivals usually need to upload a passport photo and a utility bill or tenancy agreement.
  2. Within 2 to 10 working days: IRD emails the number to you. Some applicants need to attend an Australia Post or IRD office for in-person verification.
  3. Day of issue: Give the number to your employer immediately and complete an IR330 tax-code declaration. The standard primary-income code is "M". The "ME" code applies if you receive an independent earner tax credit; uncommon for new arrivals.
  4. Within the first month: Set up a myIR online account at ird.govt.nz to track wages, manage tax codes and receive correspondence digitally.

Without the IRD number, employers must use the "no-notification" rate of 45 per cent. Once you give them the number and code M, withholding drops immediately on the next payslip.

KiwiSaver and opting out

Australians who arrive in NZ are entitled to live there indefinitely under the Trans-Tasman Travel Arrangement, so you are auto-enrolled in KiwiSaver when you start a new job. The default contribution is 3.5 per cent of gross pay from 1 April 2026 (up from 3 per cent), and the employer contributes 3.5 per cent.

If you plan to leave NZ within a couple of years, opt out between days 14 and 56 of starting the job using a KS10 form (lodged with your employer or IRD). After day 56, your funds are locked in KiwiSaver until first home, retirement (age 65), serious hardship, or permanent emigration (after 12 months overseas with proof).

If you do contribute and then leave permanently, your KiwiSaver balance can be transferred to an Australian complying super fund under the trans-Tasman retirement savings portability scheme. This is often the best path even if you opted in.

Source: IRD KiwiSaver.

Common Aussie mistakes in NZ

  1. Assuming NZ banking is the same as Australia. NZ banks (ANZ NZ, ASB, Westpac NZ, BNZ, Kiwibank) are separate legal entities from their Australian parents. Your Australian account does not work cross-border. Open an NZ account in your first week. Wise and Revolut help during the transition for AUD-to-NZD transfers without conversion fees.
  2. Not telling the ATO you have left Australia. If you are abroad for more than 6 months in a financial year, you should notify the ATO of your overseas address. HECS-HELP repayments based on worldwide income are required if you exceed the threshold; failing to lodge an Australian return triggers penalties.
  3. Buying a car without WoF and registration in mind. NZ cars need a Warrant of Fitness (WoF, like an inspection certificate) every 12 months for newer vehicles and every 6 months for older ones, plus annual registration. Many cheap used cars on offer to backpackers are sold without current WoF; budget for the inspection and any failed-item repairs.
  4. Forgetting GST is included in advertised prices. NZ GST is 15 per cent and is included in the advertised price (unlike Canadian or US sales tax). What you see on the menu or shelf is what you pay.
  5. Not opting out of KiwiSaver on a short stay. If you only plan to stay 6 to 18 months, opt out within 56 days. Otherwise your money is locked away in a foreign retirement scheme that takes years and paperwork to unlock.
  6. Missing the IR3 deadline if self-employed. If you do any contract or freelance work (not PAYE wages), you file an IR3 return by 7 July following the tax year end. PAYE-only earners usually do not need to file as IRD does an automatic income tax assessment.
  7. Underestimating Queenstown rent. Queenstown is one of the most expensive rental markets in NZ. Most ski-resort workers share rooms or live in employer-provided accommodation in Frankton, Arrowtown or Cardrona village.
  8. Driving on your Australian licence for too long. You can drive in NZ on a current Australian licence for up to 12 months from when you arrive. After that you need an NZ licence; Australian licence holders can usually convert without a driving test through NZ Transport Agency Waka Kotahi.

What to do, in order, on arrival

  1. Land at Auckland (AKL), Wellington (WLG), Christchurch (CHC) or Queenstown (ZQN). Show your Australian passport at the eGate; the Trans-Tasman Resident Visa is granted automatically. No application form, no fee.
  2. Get a NZ phone plan in your first 24 hours (Skinny, 2degrees, Spark prepay are cheapest).
  3. Apply for an IRD number online.
  4. Open a NZ bank account. Most banks let you open online with your IRD number, NZ phone number, and a NZ address.
  5. Find work and complete the IR330 tax-code form on day 1 of employment.
  6. Decide on KiwiSaver: opt in (default) or opt out within 56 days.
  7. If staying longer than 6 months, notify the ATO of your overseas address through myGov.

Settling tax when you leave

For PAYE employees, NZ runs automatic year-end tax assessments. If you leave NZ part-way through the tax year (1 April to 31 March):

  • IRD issues an automatic income-tax assessment around July of the year you left.
  • If you are owed a refund, IRD pays it to the bank account on file. Update your bank details before leaving the country.
  • If you owe tax (rare for short-stay PAYE workers), IRD bills you.

To accelerate the process and request the assessment early, log into myIR and submit an early-assessment request when you leave the country.

What this means for your Australian tax

If you remain an Australian tax resident (common for stays of less than 2 years), declare NZ wages on your Australian return and claim a foreign income tax offset for NZ tax paid. Keep your NZ payslips and final IRD income-tax assessment.

If you became an Australian non-resident for tax purposes (broadly, you set up your permanent place of abode in NZ and intend to stay long-term), you stop being taxed on NZ income in Australia, but the HECS-HELP overseas levy still applies if your worldwide income exceeds the threshold. Notify the ATO of the change in residency status when you lodge.

Source: ATO Australian residents and going overseas.

Related

ExamExplained does not provide financial, tax or migration advice. NZ tax bands and IRD application rules are taken from ird.govt.nz and immigration.govt.nz at the date above; check the source before relying on figures. For your circumstances, see a registered Australian tax agent, a NZ Chartered Accountant (CA ANZ), and an NZ Immigration Adviser licensed by the Immigration Advisers Authority for visa questions.

Frequently asked

Do I need a visa to work in New Zealand?
No. Under the Trans-Tasman Travel Arrangement, an Australian citizen can fly to NZ on an Australian passport and be issued a Resident Visa on arrival. You can live, work and study indefinitely. New Zealand permanent residents (not citizens) need the Special Category Visa, granted automatically at the border.
When do I apply for an IRD number?
Apply within the first one to two weeks of arriving. Without an IRD number, your employer must use the "no-notification" rate, which is the top marginal tax rate (currently 45 per cent). With the number, your employer applies the standard tax code (M for primary income) and tax drops to the correct band.
Will I be auto-enrolled in KiwiSaver?
Yes. Australians are entitled to live in NZ indefinitely, so when you start a new job you are auto-enrolled at 3.5 per cent of gross wages (from 1 April 2026) with an employer match. If you do not plan to stay, opt out within 56 days of starting; otherwise the funds are locked in NZ and only released for first home, hardship or moving overseas permanently.
Does my HECS-HELP debt index while I am in NZ?
Yes. HECS-HELP indexes annually whether you are inside or outside Australia. If your worldwide income is above the HELP repayment threshold ($69,528 for 2026-27), you must report it to the ATO and make compulsory repayments. Notify the ATO of your overseas address within 7 days of departure.

Sources

Last updated 2026-09-23.