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  1. #1

    Default Investing in NZ from Australia

    Does anybody have a source for more information (be it online or a person to enlist the assistance of) who can advise an Australian resident on the most appropriate company/tax structure for investing in NZ. Problems we have encountered so far restrict the ability to use capital gains or profits created in NZ to offset losses in Australia, without having to pay tax before offsetting any losses.

    Is it possible?

  2. #2
    Join Date
    Aug 2003


    Welcome to Propertytalk....may I suggest you contact Jeff Owens - his website can be found here


    Jeff will point you in the right direction if he personally can not assist you.



  3. #3

    Default Appropriate structures for NZ Property Investment


    I am startled by your expressed wish to offset losses in Australia by using capital gains in New Zealand! If you have other income in Australia, can't you offset those losses against that income? or are the losses locked in a company or trust?

    I am pasting an answer in another forum here -

    "I recommend NZ discretionary trusts for Australian investors.

    There's no CGT in New Zealand, so the trust does not pay tax on any capital gain. Capital distributions - other than from capital gains - can be made to beneficiaries in Australia with no tax consequences.

    The trust can make capital distributions from the non-cash expenses claimed on the investment property - these are claimable deductions where no cash leaves the bank account, so the bank account is not reduced and is available for capital distributions.

    When the property is sold, from a NZ perspective, the trust corpus is replenished from the capital distributions made to the Australian beneficiaries. The capital gain replenishes the capital of the trust. It is never distributed to the beneficiaries."

    Does that solve the problem that you have?


  4. #4
    Join Date
    Aug 2003


    The NZ Property Magazine - October issue has a good article on Investing in Australia as a tax resident in New Zealand. The reverse situation to the one mentioned above - I know but many of us here in NZ do have Investment Property in Australia.

    Some key points mentioned in the article by Stephen Tsang are:

    1. NZ tax rules are applied on Australian rental property effectively treating it as a rental property in NZ - so Australian rental losses can be offset against NZ derived income.

    2. Do need to complete an Australian Tax return and pay capital gains tax when you sell the property

    3. Non -resident withholding tax applies to borrowed money in Australia

    4. Foreign exchange variation applies on unrealised gains and losses.



  5. #5


    Hi Donna,

    On point 3, the NRWT tax is only payable if the bank in Australia from where the money is borrowed does not have a representative office in New Zealand.

    Where the Australian bank also operates in New Zealand, no NRWT has to be paid. So it's worth making sure that the bank that it is proposed to borrow money from in Australia also has representation in New Zealand.

    Where that is not the case, NRWT at 10% of the interest has to be paid to IRD.



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