# Housing/Taxes/Salaries in NZ or AU



## krizzz (Nov 7, 2012)

My wife and I have decided to make the big move from America to either NZ or Australia. We have two little girls (7 and 5) and really need to get this right the first time, so as not to disrupt their lives any more than is absolutely necessary.

The two things that give us pause are the costs of living (specifically housing) and potentially high taxes.

*Housing*
Wherever we land, we would not be "city dwellers", but prefer a nice suburban community. As I am COMPLETELY ignorant of international real estate, can someone shed light as to general rules of thumb. For example, living in "the city" (Chicago, New York, etc) is more expensive than in the suburban areas in America. Is this true also in AU and NZ?

Based on our skills (IT and Nursing) we will need to be near a population center and are closely looking at:

NZ: Auckland, Wellington
AU: Melbourne, Sydney

Any thoughts on cost of living OUTSIDE the city in any of these areas, or specifically good/bad locations?

*Taxes*
We can easily find info on tax rates, but I am unsure if there is any system of deductions as we have here in the states. Is there such a thing or does everyone pay the declared rate?

Can any U.S. Expats explain (in layman's terms) how an American, working in NZ would have to pay taxes (or pay double taxes??).

*Salaries & Economy*
I've frequently heard that salaries are very low in NZ, and higher in AU. But I've also heard that a lot of NZ employers give out other perks (e.g. company car) in lieu of higher salaries. Lastly, I've heard that AU has higher cost of living (which would seem to offset the increased salaries). Can someone please help me make sense of this?!

Sorry folks, I know it's a lot of questions, but we can REALLY use your expertise.

TIA!


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## topcat83 (Apr 16, 2009)

krizzz said:


> My wife and I have decided to make the big move from America to either NZ or Australia. We have two little girls (7 and 5) and really need to get this right the first time, so as not to disrupt their lives any more than is absolutely necessary.
> 
> The two things that give us pause are the costs of living (specifically housing) and potentially high taxes.
> 
> ...


Hi there and welcome to the forum. 
There are some members from the USA who will be better experienced to say about the tax situation. But here goes with some of the rest.

Housing is definitely more expensive in central Auckland & Wellington, and some suburbs will be expensive too - usually because of the schools and proximity to the centre. There are some rural areas that are very commutable too, to the north and south of Auckland. Look for other posts that talk about reasonably priced suburbs, and look at www.realestate.co.nz for house prices. 

you will find many things more expensive than the us - again, there are other posts on the forum.
Salary may be less than in Sydney or Melbourne- but I think they are more expensive to live in. Swings & roundabouts.


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## jsharbuck (Jul 26, 2012)

Hi think I can help in taxes. We moved here 6 mths ago so haven't had to file US and NZ taxes. I do understand that there is a foreign tax credit on your US tax form. I think (but not sure %100 that the first 87k is exempt on US taxes. Please check further on that with the IRS.

NZ taxes are a lot less. 100K in NZ is taxed at 26%. In the US we paid 35% Fed, 6.2% Ss, Medicare tax 8% and State taxes of 9%. We also always ended up paying about 2 to 3 K at tax time. M

My husbands employed pays our medical insurance which saves us about $500 USD a month. Prescriptions are $5 each for a 3 mth supply. 

Housing costs: we rent an executive style home in Rotorua in one of the best neighbor hoods and pay $1,200 which is half what we paid I'm Philadelphia. Buying a house once you get Residence status is much cheaper. A 5 % down payment is standard, no massive closing costs, maybe 2,000. No escrow, just your principal and interest. 

There are things that cost more like food, clothes as you learn where to shop. This has been a lifestyle change for us and even though we earn less here, we find tha given the savings on taxes, insurance and housing, we feel that our income is about the same or better. Feel free to PM if you have any questions and good luck.


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## krizzz (Nov 7, 2012)

Thanks for the great info! We are still slogging through stuff from the IRS Web site, but with no real understanding yet of all it means. =)

Any other expats with thoughts or experiences, please feel free to share!

Thanks.


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## pookienuffnuff (Jun 11, 2012)

Cost of living in Oz seems cheaper and wages are higher than NZ (like for like eg comparing the capital with the capital or suburb with suburb). I vote Oz.


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## sa2nz (Jan 12, 2013)

Hi Krizzz, 

To get an idea of average salaries for different industries, have a look at the "Seek" and "TradeMe" average salary guides - the information is taken from the actual vacancies listed on their sites.

Sorry, I'm a newbie, can't post links yet....


Good luck!


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## UK2DK2NZ (Nov 14, 2011)

Hi Krizz,

Regarding the housing, we live in a small village (2000 ish people) called Pirongia which is about 30mins drive south of Hamilton NZ. Its a great place to bring up children. There is a really good community feel, the school is good, there is a very well respected sports club, cafes, small supermarket, pub, monthly market, child care and responably priced housing................ oh, and an awsome view of the mountain.

The small town of Te Awamutu is 10 mins drive and there is EVERYTHING you need there. If you do want more choice then you go to Hamilton.

In Hamilton is Waikato Hospital and I would guess there is IT work around.

We lived in Wellington for 2 years when we first got here, and although I really like Wellington, I am so glad that we're not living there any more. The main two reasons are the weather and lifestyle. We were looking for a slower pace of life and loads of space for the kids (we've achieved both). Personally, I wouldn't touch Auckland with a barge pole........... way too busy for us!

Hope that helps a bit!


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## Song_Si (Jun 11, 2010)

^ Go Pirongia! Nice to see someone living rural.
Way back i lived/worked in Hamilton East, had friends living in Whatawhata not too far from you, great cycling country, and thought if I ever went back to that part of the country somewhere around, but not too close, to Hamilton would be ideal. 
I'm with you re avoiding Auckland, for me it would be the last place I'd live. But others love it - I have 'big city' friends who wouldn't live anywhere smaller. Coming from rural Taranaki I endured 10yrs working in Wellington but never really adopted the place as 'home' much preferring to spend time in the Wairarapa, many friends there in the small towns Woodville, Pahiatua, Eketahuna, and I based myself in Pahiatua the last 6mths bfore I left NZ. Population about 2400, and apart from some incredibly cold frosts! an area I could happily live in if work/finances allowed. Though not a long drive to Palmerston North, maybe similar distance for you to Hamilton?
Housing costs - friend in Pahiatua has a 5 bedroom villa on five acres of flat land, orchards and about 30 sheep. Cost under $220,000 6 years ago, maybe 300k now.


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## Song_Si (Jun 11, 2010)

on housing, this in news today re Tauranga, another area I like, but . . . $$$

*Housing in Tauranga 'unaffordable'*
23rd Jan 2013 2:34 PM

Housing costs in Tauranga have been branded "severely unaffordable" in an international survey of 337 mainly English-speaking cities across the globe.

An international housing affordability survey by Demographia has put Tauranga 40th from the bottom of the least affordable cities in Australia, Canada, Hong Kong, Ireland, New Zealand, the United Kingdom and America.

The $349,000 median house price in Tauranga and the Western Bay was nearly six times the area's median household income of $59,600. It meant the city ranked alongside Perth and Toronto for affordability but had improved against the skyrocketing markets of Auckland and Christchurch which polled 24th and 26th respectively.


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## Kristina Andersen (Feb 28, 2013)

If you are earning wages or salary in NZ the employer automatically deducts tax from your pay and pays it to the NZ Inland Revenue Department. For most people that is the end of the matter and they neither need to file a tax return nor pay/receive any extra payment to/from the IRD. There are very few allowable deductions for wage and salary earners. 

There is the possibility of a 4 year exemption from having to pay tax on overseas income in New Zealand - conditions apply. 

Once you become a New Zealand tax resident (this is quite different from immigration residency and may apply even if you are not a permanent resident) you may have to pay tax in NZ on your worldwide income. The tax treaty will provide some assistance in avoiding double taxation.


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