Know what tax you will expect pay before moving to Australia.

 If you are a high income earner you WILL pay 45 cents in every dollar in Australia (on earnings above $180,000). 

There are also other taxes across all sorts of things which you may not be used –

  • Goods and Services tax on most goods (currently 10%)
  • Capital gains tax on selling property (conditions apply)
  • Stamp duty when buying property. Each state is slightly different in the amounts you have to pay when purchasing a property. On a $500,000AUD property in QLD, you will pay an extra $10,200 on top of the purchase price for example.

Income tax –

Resident tax rates 2017–18

Australian Resident tax rates 2017–18
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $87,000 $3,572 plus 32.5c for each $1 over $37,000
$87,001 – $180,000 $19,822 plus 37c for each $1 over $87,000
$180,001 and over $54,232 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%. Medicare levy will be covered under Medical and Insurances in Australia.

Double Tax Agreements

The good news about moving from New Zealand to Australia (or any other countries listed here) means that if you still have income producing assets in New Zealand for example, you won’t be double taxed on this income.

When living in Australia you must declare to the tax man all your worldwide income. This is where the double tax agreements (DTA) come into play. You won’t pay double tax as long as you have paid tax in the country of origin of the income.

Tax information
This tax information is generalist in nature and you must seek professional financial advice regarding your obligations to taxation.

Categories: Tax in Australia