Compare · New Zealand vs United Kingdom
New Zealand vs United Kingdom for Australians leaving home
New Zealand and United Kingdom run the same headline regime, worldwide tax, so the decision turns on the details underneath: what each one does to capital gains, dividends and the Australian income you keep.
Both have a tax treaty with Australia, so either way you get a tie-breaker if the ATO contests your departure, and capped withholding (15%/10% vs 15%/10% on unfranked dividends/interest).
New Zealand is the cheaper place to live day to day, roughly 90% of Sydney's basket against United Kingdom's 105% (indicative, ex-rent), which can outweigh a thinner tax saving over a full household budget.
Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →
| 2 destinations | New ZealandNew Zealand | United KingdomUnited Kingdom |
|---|---|---|
| Tax | ||
| Regime | worldwide, taxes worldwide income | worldwide, taxes worldwide income |
| Income tax on salary | Progressive 10.5, 39%. No tax-free threshold at all (the first dollar is taxed) but effective rates at middle incomes land close to Australia's. | Progressive 20/40/45% plus employee NI (8% then 2%). The £100k, £125k allowance taper creates a 60% effective band. A £120k salary pays roughly 36% effective with NI. |
| Capital gains | No general CGT: long-term share gains untaxed. Exceptions: traders, property inside the bright-line window, and the FIF deemed-return regime on non-ASX foreign shares over NZ$50k. (0% typical) | 18% basic / 24% higher rate on shares and crypto, £3,000 annual exemption. FIG-regime arrivals: foreign gains tax-free for 4 years. (24% typical) |
| Dividends | Dividends taxed at marginal rates. NZ imputation works like franking; Australian franking credits are NOT usable in NZ, a long-standing trans-Tasman sore point. | 8.75/33.75/39.35% above a £500 allowance. Australian franking credits are not recognised, but for FIG-regime arrivals, Australian dividends are simply outside UK tax for 4 years. |
| Interest | Taxed locally around 33% | Taxed locally around 40% |
| Crypto | No CGT does not mean crypto-free: IRD treats most crypto as bought with intent to sell, making gains taxable income at marginal rates. The onus of proving otherwise is on you. | Crypto disposals are CGT events at 18/24% with a small annual exempt amount (£3,000). Swaps and spending count. HMRC receives exchange data; FIG-regime arrivals can realise foreign crypto gains UK-tax-free in years 1, 4. |
| Australia tax treaty | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available |
| Social security | No social security tax; ACC earner levy (~1.6%) applies to employment income. KiwiSaver is opt-in for migrants. | Employee National Insurance (8% to ~£50k, 2% above) is excluded from the calculation above, add it for employment income. |
| Visa | ||
| Best pathways |
|
|
| Visa ease | 10/10 | 6/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~0 months on the quickest pathway | ~2 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $3,300/mo | $6,500/mo |
| Rent (couple, monthly) | $2,300/mo | $4,200/mo |
| International school (per child/yr) | Free / local system viable | Free / local system viable |
| Health cover (family/yr) | $3,000 | $4,000 |
| Cost of living vs Sydney | 90% of Sydney (ex-rent) | 105% of Sydney (ex-rent) |
| Relocation one-off | ~$12,000 | ~$25,000 |
| Flights home (return, pp) | $500 | $2,400 |
| Life | ||
| Timezone vs AEST | 2h ahead | 9h behind |
| Flight from Sydney | ~3 hours | ~22 hours |
| English | 10/10 | 10/10 |
| Safety | 9/10 | 8/10 |
| Healthcare | 8/10 | 8/10 |
| Schooling | 8/10 | 9/10 |
| Climate | Temperate maritime, Auckland is mild and wet; the South Island does real winters. | Mild, grey and damp, the winters are dark more than cold, and Australians feel it. |
Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.
Honest downsides, side by side
Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”
New Zealand
- The tax saving is thinner than it looks: no CGT is real, but income rates are Australia-like, there is no tax-free threshold, and salaries are 15, 25% lower for the same role.
- The ATO treats a hop to Auckland with scepticism, same time zone, 3-hour flights, easy return; your "permanent departure" evidence needs to be stronger, not weaker, than for Dubai.
- Auckland housing rivals Sydney for unaffordability, and the cost-of-living basket is not meaningfully cheaper.
- Earthquake and weather-event risk is priced into insurance, and the economy is small, career ceilings arrive quickly outside a few sectors.
United Kingdom
- This is a higher-tax country than Australia for most: 40% starts around A$100k equivalent, NI stacks on top, and the £100k, £125k taper creates a 60% zone with childcare cliff-edges.
- London costs Sydney money without Sydney weather, and the FIG honeymoon is exactly 4 years, after which worldwide taxation lands in full.
- Visa costs are the world's highest: fees plus the health surcharge can run £15, 20k for a family before anyone earns a pound.
- Winter darkness (8-hour days, weeks of grey) is the quiet reason many Australians go home.
Make this comparison yours
The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in Auckland: $14,200”, not a range.