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Posted by southerner 16 years ago.

What is the tax status for a New Zealander working in Australia but sending the income to wife and 4 kids in New Zealand?

I have looked at both the NZ and Australian government websites and still have questions over this. Will I be taxed in Australia and then again in New Zealand? Will the IRD take into consideration the tax paid in Australia?

2 replies, the latest on 25 March 2010.
Reply from little-helper 16 years ago.

It all comes down to whether you are deemed to be a resident of NZ or Australia for tax purposes. They look at the ties you have in NZ/Aus etc and can be quite complex. It is best to talk to an accountant, but one thing is for sure: you will not be taxed twice. Both countries do take into account the tax paid in the other country when working out how much you owe. With the lower taxes in Australia you would probably find it preferable to be deemed an Australian resident for tax, if you can.

Reply from johne 14 years ago.

ditto. came to aus mid tax year and wife and 4 kids stayed in nz while i got things sorted. you will almost certainly be regarded as a nz resident for tax purposes (by ird) while your wife and children are there. the test is, do you have an enduring relationship with nz? you do. you pay your australian tax (payg) just like nz. as a nz tax resident, you pay tax on your world wide income, so your aus income will have to be declared and you will have to pay nz tax rates on that income, which will be slightly more than australias ato taxed you. you can claim your aus tax paid as a tax credit, but there is a limit. you can only claim the tax credit up to the level of tax payable in nz. if you have nz income at the same time, this could affect the tax credit. it isnt that difficult to follow. you dont need an accountant. if you can read a phone book, you can do it! family assistance may be affected slightly also. you will probably stop being regarded as a nz tax resident by ird as soon as your family join you in aus. good luck

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