Hi.
My wife and I are planning to move to NZ from Canberra for a couple of years in January and are wondering how we stand tax wise as we have an investment property here, and our home which will be rented out while we are gone too.
We dont know much about the tax implications or tax breaks we will be entitled to or even who we get them from, the ATO or NZ tax?
If anyone out there knows anything about this we would be interested in hearing.
We have spoken to an accountant here but he just said he didnt know much about NZ tax laws and left it at that!
Thanks for any help
No experience with NZ
I lived away in Europe for a while and it was the worst of both worlds. Income in Oz (rent) was basically taxable at the witholding rate, mid range rate. Property held in Oz was counted in my total "fortune" as they called it in my host country and I got taxed on that (thankfully paid by my employer). I expect NZ will be a bit friendlier due to the close economic relationship. Good luck with your move NZ is a beuatiful place , I could happily move there.
First of all, get another accountant who does know something about NZ tax.
I would expect that there would be a tax treaty between the two countries so you would not be paying tax on the same income twice. We are overseas investors and all income from property in AU is indeed taxable, but you also still get the usual deductions i.e. interest, costs, depreciation etc. but since your main income will now be in NZ you can no longer negatively gear against your personal income and any tax losses on your properties will build up until you return to AU or until you sell whichever is earlier.
As a non resident you might be able to qualify for a foreign currency loan which is a bit risky but can be worthwhile if you have the stomach for it.
gday
i lived in nz for 3 years and kept an investment property in sydney
good news is you can claim your Oz property in both countries.
You get tax credits in Australia (assuming you are neg gearing), and payments on Oz prop bring your NZ taxable income down.
There is a witholding tax though but in my limited experience and knowledge i think it works out pretty good.
but talk to an accountant experienced in this and get it from the horses mouth
Thanks for the advice. I will be searching out a decent accountant before i do anything.
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