Choosing a bank and setting up a bank account
One of the first things you’ll need to do when settling in New Zealand is set up a bank account. Here’s what you need to know.
Currency exchange
The currency of New Zealand is the New Zealand Dollar. New Zealand banks and post offices offer foreign exchange services and most have currency exchange calculators on their websites.
Opening a bank account
It is a good idea to open a bank account as soon as possible. Employers will need a bank account number in order to bank wages directly.
When you go to a bank to open a bank account, the bank will usually ask for three forms of identification, one of which should have a photo on it, for example, your passport or overseas driver’s licence.
Banks offer different fee structures for transactions. Talk to several before deciding which bank best suits your needs. Information about banks and their policies is available at individual bank branches or on their web sites.
The main banks are:
Disputes and problems with banks
To find out more visit the Banking Ombudsman's website or call 0800 805 950.
Applying for an IRD number
Before you get a job or start a business you must get a tax number from the Inland Revenue Department (IRD).
What do I need to do to get an IRD number?
You will need an IRD number before you start a job. An IRD number is a unique number issued to you which will never change even if you go overseas and then return to New Zealand at some time in the future.
To obtain your IRD number you will need to fill in an application for individuals (IR595) form from the Inland Revenue Department website.
For more information about how to get your IRD number, visit the Inland Revenue Department website or call 0800 227 774.
Paying income tax
Income Tax
All New Zealand citizens and residents who earn income from a job or business activity must pay income tax. The Inland Revenue Department (IRD) collects income tax. The government uses these taxes to pay for government expenditure, including public services such as education, healthcare, railways, roads and welfare.
As at 1 October 2010, income tax rates in New Zealand are:
| Income to $14,000 |
10.5% |
| $14,001 to $48,000 |
17.5% |
| $48,001 to $70,000 |
30% |
| $70,001 |
33% |
The income tax year runs from 1 April to 31 March. Most wage and salary earners have their tax deducted from their pay by their employer throughout the year. This is called "Pay As You Earn" (PAYE). However, if you earn income that has no tax deducted, or if you paid either too much or not enough tax during the year, you'll need to file a return (IR3) or get a personal tax summary (PTS).
For more information, visit the Inland Revenue Department's website or call 0800 227 774.
KiwiSaver
KiwiSaver is a government-run voluntary savings initiative that is designed to make it easier to save for your future. You will be able to access your savings when you are eligible for the NZ pension, NZ Superannuation (currently at age 65) or after five years' membership, whichever is later. Being a KiwiSaver member will not affect your eligibility for NZ Superannuation.
The Government will help you save with KiwiSaver by giving you $1000 to start with, a tax credit of up to $1042.86, a fee subsidy and, if you qualify, a first home deposit subsidy.
For more information about KiwiSaver and to find out if you are eligible, visit the KiwiSaver website or call 0800 549 472.
Working for Families
Working for Families is a government scheme designed to help make it easier to work and raise a family. It pays extra money to many thousands of New Zealand families with children.
Financial support is available for almost all families with children who earn under $74,000 a year. It is also available to many families earning up to $100,000 a year.
For more information, visit the Working for Families website.
