How to Transfer Money from New Zealand to Australia
New Zealand to Australia Guide
Summary
Close geographic and political ties between Australia and New Zealand allows for a free flow of people, goods, services and currency across their national borders. There were more than 640,000 New Zealand nationals living in Australia as of June 2013, according to statistics from the Australian Department of Immigration and Border Protection. There are no restrictions to transfer money from New Zealand to Australia. However, anyone travelling with hard currency worth A$10,000 or more must declare these funds to customs authorities, as required under national anti-money laundering regulations.
Visas and immigration
The Trans-Tasman Travel Arrangement of 1973 allows for New Zealand and Australian citizens to visit, work or study in either country without needing a visa to travel. However, in June 30th, 2013, a Special Category Visa (SCV) was established especially for New Zealand nationals. The SCV allows eligible New Zealanders to live and work in Australia, while retaining their New Zealand citizenship. Interested individuals will need to present a valid passport and an incoming passenger card in order to be cleared at immigration. Each person must also be cleared in a character and health check; if these conditions are met, an SCV can be obtained from a departmental office.
The SCV does not give permanent residence status for New Zealanders in Australia, but allows them to work and live there indefinitely as long as they retain their citizenship. There are particular restrictions for New Zealand nationals who are Australian permanent residents or SCV holders. They are not able to vote in Australian elections, join the Australian army, hold permanent positions in the government or access student loans.
Study in Australia
New Zealand citizens do not require a study permit in order to attend tertiary institutions in Australia. These students are eligible for domestic instead of international tuition fees, but they will not be able to apply for Australian student loans. More information about studying in Australia can be obtained from the Australian High Commission in New Zealand.
Purchasing property in Australia
Citizens of New Zealand are able to purchase property in the urban areas of Australia. However, you should research out the costs and requirements before you transfer money from New Zealand to Australia as these prices tend to be relatively expensive. If you want to buy property in rural areas, you will have to contact the Foreign Investment Review Board (FIRB) for more information.
Money and banking
Australia boasts a sophisticated banking system. Although there are many options to choose from, consider that interest rates can vary greatly between different financial institutions. The major banks in Australia include Westpac, ANZ Bank, National Australia Bank and Commonwealth Bank, some of which maintain branches in New Zealand. Opening a bank account in Australia is a fairly straightforward process; New Zealand natives will need to show proof of an address in Australia, a bank statement and a certified copy of a passport.
Paying tax in Australia
New Zealand nationals who live and work in Australia will only be taxed on income earned within the country. This is irrelevant of whether you make overseas money transfers of salary, profit on investments or remittances. This is the case because New Zealanders are taxed on worldwide income. On the other hand, Australians living and working in New Zealand must pay taxes on income earned within New Zealand.
New Zealand citizens working in Australia will be required to get a tax file number in order to pay taxes. Registration forms for this number may be obtained from the Australian Taxation Office. Without this number you are likely to lose up to 46.5% of your salary as well as individual benefits. How much tax you pay is determined by how much you earn. New Zealand natives may also have to pay the Medicare Levy. The Australian tax system can be complex, so it is recommended that you consult with a certified accountant before preparing your statement.
Medical coverage in Australia
New Zealand nationals plan to reside in Australia for an extended period are entitled to some degree of medical benefits, as well as free emergency care. However, it is advised that you obtain more comprehensive health coverage before leaving New Zealand.
Trade
The economic and trade relationship between Australia and New Zealand is a significant one. Australia is New Zealand’s largest overall trade partner, driving steady international money transfer flows. More than 23% of New Zealand’s exports are destined for Australia. An ongoing free trade agreement between the two countries has helped to encourage the exchange of both goods and services; bilateral goods trade amounted to more than A$18bn in 2013.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
Yes, all the companies are safe and fully-regulated money transfer services.
Each are authorised and regulated by the relevant authority such as the Financial
Conduct Authority(FCA) in the UK, FinCEN in the US, FinTRAC in Canada or ASIC in Australia.
How long does an international money transfer take?
The speed of delivery will depend on where the money is being from and to and how
you are sending and receiving the money. Transfers sent using bank to bank transfers
can depend take anywhere from minutes to days and you should check the time estimates
from the relevant provider. Debit and credit card payments sometimes allow for faster
transfers for smaller amounts.
How do I use FXcompared?
First review the comparison results (such as for a table above) for a given amount
of money sending from New Zealand to Australia. Then select a provider based on
factors such as price, speed, their rating and click the green button to be taken to
their website. From there, you can register and sign up for an account. Once you have
done that and the provider has verified your identity to ensure the money can be send
safely, you will be ready to transfer money.
What payments methods can I use to send money overseas?
The results shown above are typically for bank to bank transfers. It is possible
via some providers to pay in your funds for the transfer via cash, debit or credit
cards as well but this is usually reserved for smaller amounts. Some providers also
give you different options for how the money will be received - to a bank account
(most common), to a debit card, to cash or to a digital or mobile wallet.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
There can be a number of reasons why the final price you are offered may be different
to that shown in the table above. Exchange rates between two currencies change all
the time and is the most common reason. Additionally, some providers offer different
pricing depending what method you are using to send funds or how the funds will be
received. Others may offer you a premium service for faster payments. In some cases
FXcompared has a special rate with a provider and this is reserved for first time
customers who sign up to the provider starting from FXcompared’s website.
As prices do change often, be sure to confirm the total cost with the provider
before transferring money.
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