Living in New Zealand

Getting Paid

​

Wages and salaries are usually paid directly into a bank account by direct deposit. Using internet banking or smartphone banking, you can easily track your payments, transfer funds between accounts, and pay bills and other people using online payments.

​

Paying

​

Cards are the most common way to pay for items in New Zealand. Cash is used significantly less in New Zealand compared to overseas. Most shops     and outlets provide for payment by EFTPOS, and most permit payment by credit card. ATMs are in numerous locations in most cities to access  cash.

​

Income Tax

​

Taxation in New Zealand is collected at a national level by the Inland Revenue Department (IRD) on behalf of the Government of New Zealand. The personal tax years run from 1st of April to 31st of March.

​

When you begin earning income you will need to apply for a IRD number. Without one you will by default be taxed at the highest possible level.

​

The highest personal tax rate is 33% for income over $70k while at the bottom the tax rate is 10.5% on income up to $14k. The maximum company tax rate is 28%. Tax on income for employees is generally collected under the Pay As Your Earn (PAYE) scheme, meaning tax is deducted before the employee receives the salary or wage in the hand. Self-employed workers, however, will need to make their own arrangements for payment of income taxes.

​

Goods and Service Tax

​

Most products or services sold in New Zealand incur GST at a rate of 15 per cent. You do not pay GST on residential rents and financial services.

​

All businesses are required to register for GST once their turnover exceeds $60k annually. Once registered, businesses charge GST on all goods and services they supply and can reclaim any GST they have been charged on goods and services they have purchased.

​

Other Taxes

​

The Accident Compensation Corporation (ACC) scheme covers accidents and injuries in New Zealand. The ACC scheme ensures that if you are injured or suffer an accident you will automatically receive the medical and financial assistance you need, including medical and treatment costs, weekly compensation if you are unable to work, and support to return to work or independence as quickly as possible.

​

Kiwisaver

​

KiwiSaver is a voluntary work-based savings scheme set up by the Government to encourage New Zealand earners to save for their retirement.

​

If you're employed, you can “opt in” and choose to pay 3, 4 or 8 per cent of your gross (before-tax) wage or salary to your KiwiSaver account. As with the PAYE scheme, any Kiwisaver contribution will be taken out of your salary or wages automatically before you receive it. Once you’ve joined you can also make lump-sum contributions to your account if you wish. Several banks and other financial institutions provide Kiwisaver schemes as a vehicle through which your savings may be invested, and typically a range of investment portfolios with varying risk profiles is provided.

​

Your employer also has to contribute an amount equivalent to at least 3% of your gross salary/wages to your Kiwisaver fund (this cannot be taken by the employer out of your salary or wages). The government pays into your KiwiSaver account with an annual “member tax credit” of up to $521.

​

To be eligible for Kiwisaver you must be a New Zealand citizen, or entitled to live in New Zealand indefinitely. You can choose to join KiwiSaver at any time. After 12 months in KiwiSaver you also become eligible to take a limited break from saving (a “contributions holiday”) if you wish.

​

If you are automatically enrolled when you begin employment, you can “opt out” of KiwiSaver if you wish, but only in the narrow window between 2 and 8 weeks of starting your job.