The NZ–Australia comparison is a common financial question for people considering a move across the Tasman. This page compares the two countries’ income tax brackets, retirement savings systems and capital gains tax treatment.
Quick answer
This page compares income tax, retirement savings and capital gains tax in New Zealand and Australia. It does not compare salaries or property prices, because no single official source compares them occupation by occupation or city by city.
This page compares income tax, retirement savings and capital gains tax in New Zealand and Australia. It does not compare salaries or property prices, because no single official source compares them occupation by occupation or city by city.
Income Tax — NZ vs Australia
NZ tax brackets (from 1 April 2025)
| Income (NZD) | Tax rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| $180,001+ | 39% |
Australia tax brackets 2026/27 (from 1 July 2026)
| Income (AUD) | Tax rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Take-home comparison: the same income in each currency (NZD 80,000)
| Country | Gross income | Income tax | ACC/Medicare levy | Take-home |
|---|---|---|---|---|
| New Zealand | $80,000 NZD | ~$16,278 | ~$1,400 (ACC, 1.75%) | ~$62,323 NZD |
| Australia | AUD 64,800 (~$80,000 NZD at 1.2343) | ~AUD 9,960 | ~AUD 1,296 (Medicare, 2%) | ~AUD 53,544 (~$66,090 NZD) |
In this example, Australia’s take-home is higher, partly because of its A$18,200 tax-free threshold.
Key difference: Australia’s tax-free threshold ($18,200 AUD) means low earners pay no income tax. NZ taxes income from the first dollar (at 10.5%).
Retirement Savings — KiwiSaver vs Australian Super
| Feature | KiwiSaver (NZ) | Super (Australia) |
|---|---|---|
| Employer contribution rate | 3.5% minimum | At least 12% of qualifying earnings, up to a set limit (reached its final legislated rate 1 July 2025) |
| Employee contribution | 3.5%, 4%, 6%, 8%, or 10% | Optional additional |
| Government co-contribution | Up to $260.72/year (government contribution, 25c per $1 contributed, for members aged 16 to 65) | Co-contribution for low to middle income earners who make after-tax contributions |
| Access age | 65 | From 60 if retired or leaving a job (preservation age is 55 to 60, depending on birth date); from 65 whether working or not |
| First home access | ✅ Yes, after 3 years | ✅ Yes, via First Home Super Saver Scheme |
| Tax on contributions | Employee contributions come from after-tax pay; employer contributions are taxed as ESCT (10.5% to 39%); in a PIE scheme, fund earnings are taxed at your PIR (10.5% to 28%) | Most employer contributions taxed at 15% in the fund; investment earnings taxed at up to 15% |
Employer contributions are much higher in Australia. At 12% vs NZ’s 3.5% minimum, on an $80,000 salary:
- Australian super: AUD 9,600/year employer contribution
- NZ KiwiSaver: NZD 2,800/year employer contribution
Over a long career the difference in employer contributions adds up, before any difference in investment returns, fees or tax.
Capital Gains Tax
| Country | CGT |
|---|---|
| New Zealand | No CGT (but bright-line rule taxes residential property sold within 2 years) |
| Australia | Yes — 50% discount for assets held 12+ months; full marginal rate for assets held under 12 months |