Banking, Finance and Taxes in Auckland

One of the first things you’ll need to do when you arrive in New Zealand is open a bank account in Auckland. This will be essential for receiving your pay from your new job and making purchases to help set yourself up in this new city.

You’ll also need an IRD (Inland Revenue Department) number for tax, and you may wish to open a KiwiSaver (retirement) account in New Zealand or bring money across from your home country.

The banking, tax and financial systems are quite straightforward in New Zealand, so read on to get started.

Setting up a bank account in New Zealand

Opening a bank account in Auckland is fairly easy. You’ll need valid identification such as a passport or driver’s licence, proof of address in New Zealand, an IRD (tax) number, and you may need a reference from your bank in your home country. Some banks will also require a minimum deposit to open an account.

Most New Zealand banks offer a range of accounts and products, from transactions and savings to term deposits and investments. Depending on what you’re looking for in a bank be sure to shop around to find the best deal.

Keep in mind that when arranging a New Zealand bank account for non-residents, it’s unlikely you’ll be able to apply for a credit card straight away. Unless you are purchasing a house when you arrive, you may need to wait for a year or more or put down a large sum as security on the card.

Additionally, if you’d like to set up a bank account before you arrive, some banks will let you do this and transfer money into the account so that you’re ready to go with funds from day one.

Here are some of the major banks in New Zealand:

Tax in New Zealand

Tax in New Zealand is organised through the Inland Revenue Department (IRD), which works at a national level. Each person paying tax in New Zealand has an IRD number, which means that if you are bringing children with you, they will only need one if they are to earn money.

You can apply for an IRD number before you arrive in New Zealand. There is a special non-resident application form to apply for a number. For this, you will need a valid visa, your passport, and either a New Zealand bank account or a completed due diligence form.

You can enter the country and begin work without applying for an IRD number. However, you will pay your New Zealand tax at the no-declaration rate, which is higher than the normal rate.

Transferring money to New Zealand

Foreign currency transfers to New Zealand are often necessary when you want to move to Auckland and set up a new life in the country. Some banks will allow you to open an account and move money to New Zealand before you even arrive, in which case you’ll need to talk directly with your branch to arrange the transfer.

In other cases, moving money to New Zealand can be done simply through a third-party agency. For example, many people who transfer money from Australia to New Zealand use OzForex, which you can do online and receive your funds within the space of just a couple of days.

Another international option is TransferWise, which works in currencies all over the world.

What is KiwiSaver?

KiwiSaver is a voluntary retirement savings scheme. When you begin work at your new job, you will have the option to sign up or opt out. Should you sign up, you will have the choice of contributing three, four or eight percent of your wage into your KiwiSaver member account. On top of this, your employer is required to pay a further three percent of your wage into your account.

Additionally, the government helps to kick-start new accounts with a $1,000 contribution, and annual tax credits.

You can choose where your money is invested by exploring your options with private KiwiSaver companies. Each one will typically let you choose how you would like to invest your savings, such as in a high-growth, conservative, or balanced account.

There are some rare circumstances in which you can withdraw funds – such as for purchasing a first home, moving back overseas, or requiring the funds for serious financial issues or medical bills – otherwise, you will not be able to touch this money until you retire. Currently, the retirement age in New Zealand is 65.

You can bring any existing retirement savings with you to put into KiwiSaver, and you will receive an information pack with more detailed information on the initiative when you begin your job.