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Check on your tax situation

IF YOU are thinking about moving to New Zealand and staying for the long term, you will need to apply for an IRD number. You may also be eligible to take out a student loan or receive family assistance.
To receive income from employment (salary or wages) you need an IRD number. If you don't have a New Zealand IRD number, you need to fill in an IRD number application - individual (IR595) form and send it in to Inland Revenue.
Once you have an IRD number, you'll need to fill in a Tax code declaration (IR330) form and give this to your boss. This will tell them the correct amount of tax to take out of your pay.
The New Zealand tax rates are:
  • 19.5 cents in every dollar for income up to $38,000
  • 33 cents in every dollar for income from $38,001 to $60,000
  • 39 cents in every dollar for income of $60,001 or above
KiwiSaver - New Zealand's work-based savings initiative
Since July 1, 2007, most New Zealand residents and people entitled to be in New Zealand indefinitely (who are 18 years or older) are automatically enrolled in KiwiSaver when they start a new job.
KiwiSaver is voluntary - you can opt out any time from the end of week two to week eight of starting your employment.
Tax on income from rent or business
When you receive rental or business income, you need to:
  • keep records
  • fill in an Individual tax return (IR3) every year.
Student loans
If you've taken out a student loan to cover your study costs and are living in New Zealand, you must start repaying your loan when your income is more than NZ$17,160.
Family assistance
Family assistance is financial help for families who have children aged 18 years or under, who are financially dependent. The amount of family assistance you get depends on:
  • how many children aged 18 years or younger you have in your care
  • how much you and your partner earn
  • where you get your income from (eg employment or a benefit).
The four kinds of family assistance are:
  • family support, paid to low and middle-income families for each child who is aged 18 years or younger
  • in-work payment, a payment for families who work a minimum number of hours each week
  • family tax credit, to bring a family's income up to at least $21,658 (before tax) a year. To receive this assistance, at least one parent in the family must be working for salary or wages
  • parental tax credit for the first 56 days of a baby's life.

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