Australia vs New Zealand Tax — Side-by-Side Comparison for 2026-27
Australia and New Zealand share a labour market and a Trans-Tasman visa, but run different tax systems. AU has a tax-free threshold, compulsory 12% Super, and a capital gains tax; NZ taxes from the first dollar, defaults to opt-out 3% KiwiSaver, levies 15% GST, and has no general capital gains tax or stamp duty. This page compares income tax, social levies, retirement schemes, and consumption tax using ATO 2026-27 figures and IRD 2026-27 figures.
Take-home pay on the same nominal salary
Same numeric amount taxed as both an AUD salary (ATO) and an NZD salary (IRD). Currencies aren't directly comparable — this is a structural tax comparison. AU figures include the 2% Medicare levy; NZ figures include the 1.75% ACC earners' levy (capped at $156,641 of earnings).
| Gross salary | AU income tax | AU Medicare (2%) | AU take-home | NZ income tax | NZ ACC (1.75%) | NZ take-home | Gap |
|---|---|---|---|---|---|---|---|
| 50,000.00 | 5,270.00 | 1,000.00 | 43,730.00 | 7,658.00 | 875.00 | 41,467.00 | +2,263.00 |
| 100,000.00 | 20,520.00 | 2,000.00 | 77,480.00 | 22,877.50 | 1,750.00 | 75,372.50 | +2,107.50 |
| 150,000.00 | 36,570.00 | 3,000.00 | 110,430.00 | 39,377.50 | 2,625.00 | 107,997.50 | +2,432.50 |
| 250,000.00 | 78,370.00 | 5,000.00 | 166,630.00 | 76,577.50 | 2,741.22 | 170,681.28 | -4,051.28 |
Gap shows AU take-home minus NZ take-home on the same nominal gross. Excludes AU MLS (1%–1.5% above $105,000.00 single without private health cover), retirement contributions, and any NZ Working for Families / IETC entitlements. Neither country levies a state or regional income tax.
Income tax brackets — side by side
🇦🇺 Australia (FY 2026-27)
- $0 – $18,200: 0%
- $18,201 – $45,000: 15%
- $45,001 – $135,000: 30%
- $135,001 – $190,000: 37%
- $190,001+: 45%
Stage 3 brackets, $18,200 tax-free threshold, 2% Medicare levy on top, and the low income tax offset reduces tax by up to $700.00 below $37,500.00. Tax year 1 July – 30 June.
🇳🇿 New Zealand (2026-27)
- $0 – $15,600: 10.5%
- $15,601 – $53,500: 17.5%
- $53,501 – $78,100: 30%
- $78,101 – $180,000: 33%
- $180,001+: 39%
No tax-free threshold — taxed from the first dollar. Thresholds in force from 31 July 2024. Plus ACC earners' levy 1.75% (to $156,641). Tax year 1 April – 31 March.
Key structural differences
| Feature | 🇦🇺 Australia | 🇳🇿 New Zealand |
|---|---|---|
| Tax-free threshold | $18,200 tax-free | None — 10.5% from the first dollar |
| Top marginal rate | 45% over $190,000 (+ 2% Medicare = 47%) | 39% over $180,000 (+ 1.75% ACC to cap) |
| State / regional layer | No state income tax | No regional income tax (unitary system) |
| Social / accident levy | Medicare levy 2% (+ MLS 1%–1.5% if no PHI above $105,000.00) | ACC earners' levy 1.75% to $156,641 (max $2,741) |
| Mandatory retirement | Superannuation Guarantee 12% (compulsory, employer-paid) | KiwiSaver — opt-out, 3% employee + 3% employer (3.5% from 1 Apr 2026) |
| Capital gains tax | Marginal rate, 50% discount on assets held 12+ months before 1 July 2027 (indexation + 30% min. tax after) | None — except bright-line (residential <2yr), FIF, and traders |
| Dividend taxation | Marginal rate, fully imputed via franking credits | Marginal rate, imputation credits (same concept as franking) |
| Property purchase | State stamp duty (e.g. NSW $700k → ~$26k) | No stamp duty |
| Estate / inheritance | No inheritance tax; Super death benefit 17% on non-dependants | No estate or inheritance tax |
| Consumption tax | GST 10% (food / health / education exempt) | GST 15% (broad-based, almost no exemptions) |
| Tax year | 1 July – 30 June | 1 April – 31 March |
| Filing | Return by 31 October (self) / 15 May (agent) | Most wage earners auto-assessed; IR3 by 7 July if required |
Retirement: Super vs KiwiSaver
Australia's Super is compulsory; NZ KiwiSaver is opt-out. A $100k AU salary triggers $12,000/year employer Super paid on top of salary — mandatory, regardless of employee choice. A $100k NZ salary in KiwiSaver triggers a 3% employer contribution (about $3,000) matched to the employee's default 3% — but only while the employee stays enrolled, and KiwiSaver can be suspended via a savings break.
Government top-ups differ. NZ adds a Government contribution of 25c per $1 the member contributes, up to $260.72/year (halved from $521.43 on 1 July 2025 and removed for incomes over $180,500). Australia has no equivalent flat top-up, but offers the low-income super co-contribution and concessional contribution tax of 15% inside the fund (vs marginal rate), with a 32,500.00/year concessional cap.
Trans-Tasman portability. Moving across the Tasman, you can transfer KiwiSaver into an Australian APRA super fund (not an SMSF) and Australian super into KiwiSaver. Transfers are voluntary; transferred balances keep some origin-country rules (e.g. former-KiwiSaver money can't fund an Australian first-home deposit). The AU 12% vs NZ ~6% combined default is the single biggest long-run retirement-savings difference between the two systems.
If you're moving Australia → New Zealand
- Visa: Australian citizens can live and work in NZ indefinitely under Trans-Tasman arrangements — no visa required.
- No capital gains tax: NZ's lack of a general CGT is a structural advantage for investors. Long-held shares and the family home are generally not taxed on sale — but watch the bright-line test on residential property sold within 2 years and the FIF rules on offshore shares above NZ$50,000.
- No stamp duty: Buying property in NZ avoids the state stamp duty that adds tens of thousands to an Australian purchase.
- Retirement saving drops: KiwiSaver defaults to ~6% combined (opt-out) vs compulsory 12% Super — you may want to lift your KiwiSaver rate (4%, 6%, 8% or 10%) to match your prior Super trajectory.
- GST is higher: 15% on almost everything (no food exemption) raises the everyday consumption-tax burden vs AU's 10%.
- Super: You can transfer Australian super into KiwiSaver, or leave it preserved in AU until preservation age.
If you're moving New Zealand → Australia
- Visa: NZ citizens get the Special Category Visa (subclass 444) on arrival — live and work in Australia indefinitely; a direct citizenship pathway has applied since 1 July 2023 for many.
- Compulsory 12% Super: Your Australian employer must pay 12% Superannuation Guarantee on top of salary — a major step up from KiwiSaver's opt-out 3%.
- Capital gains tax applies: Australia taxes capital gains at your marginal rate — 50% discount after 12 months for disposals before 1 July 2027, then cost-base indexation plus a 30% minimum tax from that date. Consider realising NZ gains while still NZ tax-resident (no CGT) before AU worldwide rules apply, and factor the reform date into the timing if the move happens close to it.
- Tax-free threshold: The first $18,200 of income is tax-free in AU — unlike NZ which taxes from the first dollar.
- KiwiSaver: Transfer it into an Australian APRA super fund (not an SMSF), or leave it in NZ. Transferred KiwiSaver keeps some NZ rules.
- Stamp duty returns: Buying property in Australia incurs state stamp duty (typically 3–7%); first-home concessions apply in NSW/VIC/QLD up to price caps.
AU Income Tax Calculator
Stage 3 brackets, 2026-27 ATO rates.
AU Superannuation Calculator
SG 12% projections + concessional cap optimization.
NZ Income Tax Calculator
Sister site nztax.tools — 2026-27 IRD brackets, no tax-free threshold.
NZ PAYE Calculator
Sister site nztax.tools — PAYE + ACC levy, tax codes, secondary income.
NZ KiwiSaver Calculator
Sister site nztax.tools — contribution rates, employer match, Govt top-up.
NZ GST Calculator
Sister site nztax.tools — add or extract 15% GST, inclusive/exclusive.
Frequently asked questions
Is Australia or New Zealand a lower-tax country?
Does New Zealand have a capital gains tax?
How does Australian Super compare to NZ KiwiSaver?
Can I transfer KiwiSaver to Australian Super (or vice versa)?
Is GST different between Australia and New Zealand?
If I move between Australia and New Zealand, what happens to my tax residency?
Sources
Australian figures: ATO individual income tax rates, FY 2026-27 (Stage 3). New Zealand figures: IRD tax rates for individuals, 2026-27. ACC earners' levy 1.75% to $156,641 (IRD ACC earners' levy rates). Superannuation Guarantee 12% effective 1 July 2025 (ATO).