New Zealand Lifestyle

New Zealand Finance

New Zealand Finance

New Zealand Banks

New Zealand Banks are modern and efficient and is dominated by a few very large banks, for example ANZ. New Zealander’s have adopted the cashless economy – using credit cards, and EFPTOS (electronic funds transfer at point of sale).

Setting up a New Zealand Bank Account

Once you have a job in New Zealand you will need a bank account for them to pay your salary into. You can set up a New Zealand bank account when you first arrive in New Zealand or you could try to open one before you arrive in New Zealand by finding the nearest office of a New Zealand bank, there are branches in most major cities in Europe, N.America and Asia.

The bank will require you to make a deposit NZ$200-NZ$500 and will require identification (different banks may have different rules on what paperwork is required so it check first). The different types of Bank Accounts available are:

• current accounts or cheque accounts- are for your day to day banking

• savings accounts or deposit accounts – banks provide interest on your money deposited with them. The money must be left in the account for an agreed amount of time in order to get the interest due and before it can be withdrawn

Banks in New Zealand charge monthly fees for some accounts, and fees for electronic transfers and ATM withdrawals – so shop around to find the bank and the account that suits you.

New Zealand Mortgages

If you are a resident and looking to purchase a property in New Zealand you may need to get a mortgage.

There are a large number of banks and other mortgage lenders in New Zealand for you to consider if you are resident. For More information on New Zealand Mortgages.

New Zealand Inland Revenue Tax Number

You will need an Inland Revenue Tax Number, Withholding tax or income tax will be deducted from your salary by your employer, and without a tax number you will have to pay the no declaration rate of 45%. You will be able to claim some of this back, but its better to avoid having to pay that amount in the first place.

More information is available from New Zealand Inland Revenue.

Getting an Income Tax Number will normally take about a week, and you will need to filling the IRD application form, and take along a photocopy of your passport, and details of your address.

New Zealand’s tax system means that your pay will be taxed and then at then at the end of the tax year you will then have to claim back any overpaid tax.

One word of caution, if you work in New Zealand for more than 183days within a 12month period, you could be taxed on your worldwide income, not just on what you have earnt while working in New Zealand, even if you have paid tax overseas.

New Zealand has taxation agreements with a number of countries to avoid people paying tax twice, but they can calculate the difference – my advice would be to seek help from a professional financial planner or tax adviser.