🇦🇺 Australia vs 🇳🇿 New Zealand Tax Comparison 2025
Fresh analysis built entirely from ToA Global’s 2025 bracket guide, Hughson & Associates’ property insight, and The Conversation’s OECD research so you can compare PAYE, levies, CGT, stamp duty, and retirement savings with confidence.
Updated with 2024-25 (AU) & 2025 (NZ) rates
Quick Snapshot
Australia highlights
- $18,200 tax-free threshold + Low Income Tax Offset up to $700 [ToA Global]
- Mandatory 11% employer superannuation on top of salary
- 50% capital gains discount after 12 months
New Zealand highlights
- No stamp duty or broad-based CGT on most assets [Hughson]
- Lower top marginal rate (39%) between $180k–$200k
- Simpler PAYE structure with modest ACC levy (~1.46%)
2025 Tax Brackets
🇦🇺 Australia
| Income (AUD) | Rate |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 19% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Plus: 2% Medicare Levy on most residents [ToA Global]
🇳🇿 New Zealand
| Income (NZD) | 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% |
Plus: ACC Earners’ Levy of ~1.46% up to the annual cap [Hughson]
What Drives the Difference?
Visible vs hidden tax
The Conversation shows Australia leans on visible income tax, whereas many OECD peers (and NZ) balance GST and social contributions—so Aussies feel more “taxed” even when total burden is average [The Conversation].
Capital gains & stamp duty
Australia taxes gains at marginal rates (with 50% discount) and charges hefty stamp duty (e.g. ~$16k on $500k QLD home), while NZ currently levies neither for most households [Hughson].
Retirement systems
Superannuation (11% employer) is compulsory in Australia; KiwiSaver is voluntary with a 3% employer match only if you contribute 3%.
Healthcare funding
Australia uses the standalone Medicare Levy, whereas NZ funds healthcare from general taxation (ACC covers accidents separately).
Effective Tax Examples
Figures based on Hughson & Associates’ comparative modelling (Medicare/ACC included where relevant).
| Salary | Australia | New Zealand |
|---|---|---|
| $40,000 Lower income, offsets apply |
Tax: $4,617 (including Medicare − LITO) Net pay: $35,383 (88.5%) Super: $4,400 added |
Tax: $6,604 (income + ACC) Net pay: $33,396 (83.5%) KiwiSaver: $1,200 if you contribute 3% |
| $80,000 Middle income |
Tax: $18,067 (22.6%) Net pay: $61,933 Super: $8,800 |
Tax: $18,488 (23.1%) Net pay: $61,512 KiwiSaver: $2,400 |
| $200,000 Top marginal bracket |
Tax: $64,667 Net pay: $135,333 (67.7%) Super: $22,000 (11%) |
Tax: $53,240 Net pay: $146,760 (73.4%) KiwiSaver: $6,000 (3%) |
NZ delivers more cash in hand at the top end, but Australia compounds roughly 4× more employer retirement savings thanks to super.
Example Salaries (A$1 ≈ NZ$1.08)
| Salary | Australia take-home | New Zealand take-home | What to note |
|---|---|---|---|
| A$60,000 ≈ NZ$64,800 |
A$49,208 net • Tax A$10,792 +A$6,600 employer super |
NZ$48,904 net • Tax NZ$11,097 +NZ$1,944 KiwiSaver (3%) |
LITO and the $18.2k threshold keep Australia slightly ahead at lower incomes despite Medicare. |
| A$90,000 ≈ NZ$97,200 |
A$69,608 net • Tax A$20,392 +A$9,900 employer super |
NZ$69,109 net • Tax NZ$20,892 +NZ$2,916 KiwiSaver (3%) |
Cash in hand is nearly identical; Australia’s compulsory super adds ~11% forced savings. |
| A$150,000 ≈ NZ$162,000 |
A$109,358 net • Tax A$40,642 +A$16,500 employer super |
NZ$108,433 net • Tax NZ$41,568 +NZ$4,860 KiwiSaver (3%) |
NZ’s 39% top rate kicks in later, but Australia still keeps pace once super is included. |
Medicare (2%) and ACC (1.46%) included. KiwiSaver assumes employee opts in at 3% so employers match.
Decision Guide
Pick Australia if you:
- Earn under $70k or over $180k
- Want mandatory retirement savings and richer deductions
- Are comfortable paying stamp duty/CGT for long-term upside
Pick New Zealand if you:
- Plan to buy property soon (no stamp duty)
- Prefer simpler PAYE with fewer add-on levies
- Value no general CGT and a lighter top marginal rate
FAQs
Are Australians overtaxed?
OECD data says no—Australia sits in the middle once GST credits and transfers are counted; the difference is simply visibility of income tax [The Conversation].
Does New Zealand have Medicare or super equivalents?
No separate Medicare levy; ACC covers accidents and KiwiSaver is voluntary with a 3% employer contribution only if you opt in.
What about capital gains?
Australia taxes them (with discounts). New Zealand doesn’t, except for specific bright-line property rules, making NZ attractive for investors [Hughson].
Calculate Your Take-Home Pay
Use our calculators for detailed PAYE, offsets, and retirement contributions.