The trials of trans-tasman taxes

[essence]

Stuff 10/8/2012

What do you do when the jobs and big money are on one side of the Tasman but home, school and family are ensconced on the other?

It seems a growing number of New Zealanders are commuting to Australian mines or office blocks, leaving houses, spouses and furniture behind.

Many last only a few months because of the strain on family relationships and the hours of flying, says Hays New Zealand Managing Director Jason Walker.

And that is before they face the pain of the dreaded double tax return.

Of course, the pull across the Tasman is approximately 30 per cent higher wages - a gulf not easily undone by an awkward bit of paperwork or a few thousands dollars in unexpected tax.

But Walker, whose company recruits for the mining industry, says "fly-in, fly-out" arrangements come with a health warning.

"After three months they are finding they have stopped doing it or moved fulltime to Perth because it is untenable for their relationships, or just for their long term health."

http://www.stuff.co.nz/business/money/7455039/The-trials-of-trans-tasman-taxes

[Perry]

Move to Perth with/without relationshipees?

[Meehole]

We lived for a year in Perth and him outdoors was keen to get FIFO work but believe me it IS about who you know NOT what you know for the majority of the roles. Certainly that is how it was between 2008 - 2009.

A friend of ours secured a job after a year doing FIFO from Perth, he is a drain layer by trade and works on the gas lines up North. He spends 12 hours a day driving to the job, sitting in an air-conditioned cab and then driving kilometres home to his donga x 7 days a week x 3 weeks on and 1 week off. His accommodation and food are taken care of while he is working and the week back in Perth he sleeps and does the usual chores around the house, thankfully there are no children as yet!

Him and his partner are coming to Christchurch for Xmas with the intention of moving here early next year. He has had enough and the lure of the big bucks has lost its appeal. He tells us that many of the men he works with are onto their 3rd marriages, and she is usually a Thai or Filipino that will accept the long weeks away.

Needless to say if there are 2 ex wives that had relationship property division and children to support, he probably needs to be bringing home a HUGE pig! (bacon)

The grass is not always greener on the other side.

[Keithw]

Move to Perth with/without relationshipees?

Not quite sure what you are saying/ asking there Perry, but I am one of those that have done exactly that.
There is currently no viable work for me in Auckland so I am in Perth where there is real work.
When being overseas temporarily is your only choice, but everything/one else is still in Auckland then Skype becomes an essential communication tool, as does the occasional trip home.

Unlike Meehole's friend, I dont have to spend hours in Auckland type traffic, my work is in the opposite direction to the prevailing traffic from where I live, & I am at my desk 20 min after leaving home.

Apart from the strain on relationships & therefore the great temptation to sell-up & move out of NZ, I think NZ'rs working here is actually good for NZ.
It brings in foreign currency to NZ to help keep the sinking ship afloat (I'm talking my perception of the NZ economy), that is certainly so in my case, most of my salary goes to pay for NZ expenses (mortgages, rates, insurances, repairs)

I also find it much cheaper to live here, petrol is only A$1.34 when it is NZ $2.12 in Auckland (around A$1.63). it was down as low as A$1.18 a month or so ago.
Milk is always on special at A$2 for 2L

Tax certainly is an issue and a hassle trying to sort out the NZ/ Aus arrangements, especially in the case of negative gearing, but worth the effort I believe.

BTW the Aussies are firmly stuck in negatively geared property mentality, for them it is the norm, cash positive is most unusual. Even the builders/ developers comprehension of cash positive is the same as inept real estate agents (NZ & Aus) comprehension - just put in a higher deposit !!!!!!!! They just dont get it !

[Meehole]

Hey my friend doesn't sit in Akld type traffic, he's in the outback! Miles and miles of red dust to get to his digger, then Tuesdays on the plane to and from Perth which means hours in the airport and in the air. Admittedly he gets paid for being transported but I am yawning just thinking about it!

[Meehole]

Oh and I love Oz, will return there in a few years and do the caravan trawl around the country working as we go. Only long enough until we get sick of the flies and watching ourselves in the water for fear of stingers, sharks or crocs!

[Keithw]

Hey my friend doesn't sit in Akld type traffic, he's in the outback! Miles and miles of red dust to get to his digger, then Tuesdays on the plane to and from Perth which means hours in the airport and in the air. Admittedly he gets paid for being transported but I am yawning just thinking about it!

Yes I understood that Meehole, the FIFO workers spend major parts of their lives travelling, not something I would be prepared to do for long term.
My point was that the jobs here are not just in mining.
Any supporting industry, & there are many of them, such as equipment suppliers, service industries etc also have jobs based in Perth, not in the outback.
Perths traffic is as bad as Aucklands if you are going the wrong direction. They have the same motorway problem, one road in & one road out, so an accident on a wet day can see the traffic held up for hours.

The FIFO lifestyle is suitable for some, but most are in it short term, for exactly the reasons that the article & your post have said, its hard on relationships and in terms of usable off-time, but its well paid.

[Perry]

"After three months they are finding they have stopped doing it or moved fulltime to Perth because it is untenable for their relationships, or just for their long term health."

Move to Perth with/without relationshipees?

Not quite sure what you are saying/ asking there Perry, but I am one of those that have done exactly that.

It could be taken either way - the original quote.
How tenable is it, for the relationship, moving the
family to Perth, as against doing what you are?
I suspect no one answer fits all relationships.

[Tan]

I don't think Keith is married?

Meehole - I agree, there are many ex-wives of miners as I have mentioned before. There are also many ex-miners due to suicide. Not sure of the details there. It takes a special man to mine long term and remain human, and a special woman to bring up a family alone, but include a man periodically.

By the way, you missed snakes in your last post. I have been told that if I come across one it is likely to have a bad bite. They sunbathe on walking tracks in winter as well as summer.

Still, I love it here much more than I thought I would for some unknown reason. Perhaps because winter is pretty much like NZ summer? I may hate it in 6 months.

[Meehole]

Tan, I know I missed off snakes I also missed off spiders! Watch out for the redbacks and white tails.

My husband loved Perth, we only came home for family as his dad was sick. Transference of skills was quite frustrating even between Oz and NZ. I remember an interview with a South African sales manager at a housing company, firstly he was astonished that I had used their wonderful public transport system to make my way in instead of driving and then could not comprehend that the job I did in NZ was equivalent to 3 roles combined in this company.

We still maintained that if you were prepared to work 12 hour days x 6 day weeks, running your own business you could make as good money as in WA.

Funny having to get used to the shops/malls not being opened on Sundays, closing early on Saturday. Supermarkets shutting at 6pm and having to pay cash for goods purchased from the cafe or bakery at the weekends.

I hope you have a good aircon system in your lounge and bedroom for the summer.

[Maccachic]

A family I know, the husband is working in Aussie in the mines, family is here (wife and two teenage children) he was recently back in NZ and they hadn't seen each other in 7 moths he won't be back untill xmas, they are planning on doing this untill youngest is 18 (2+ years) not sure how long they have been doing it so far. Wife works full time in NZ.

Personally I don't see how you could live like that?

[Meehole]

I met a guy in Christchurch who is doing that with wife and family in the Bay of Plenty. He said that he will continue working here with the rebuild until their youngest finishes high school in a couple of years.
One guy at my work his wife has remained in Auckland and he goes back every 3 - 4 weeks.
I wouldn't be surprised if once the rebuild kicks in more contractors don't do the FIFO thing to Christchurch. I have heard a whisper that the Christchurch Council is putting transportables onto it's own land with the intention of housing contractors and then removing the dwellings once they are no longer required.
The moneys not as good here as in Oz but then you are only 1 hour 20 mins from Auckland.
I guess the difference is between having work away from the family or remaining with them and struggling to make ends meet.
For the majority NZ has been a shitty place to earn money since 2008 if you are in the building game.

[Chrissina]

This was our scenario for the financial year ending 2012 - can anyone recommend a good accountant for dealing with the tax!! My hubby worked August 2011 - February 2012 in Australia (mines) 7 days there - 7 days here - and I am procrastinating getting the accounts done. They are usually done by an accountant but if someone knows an accountant that seems well tuned on dealing with Australian income I would be keen to know. (We had a couple of negatively geared properties as well)

[Guest]

This was our scenario for the financial year ending 2012 - can anyone recommend a good accountant for dealing with the tax!! My hubby worked August 2011 - February 2012 in Australia (mines) 7 days there - 7 days here - and I am procrastinating getting the accounts done. They are usually done by an accountant but if someone knows an accountant that seems well tuned on dealing with Australian income I would be keen to know. (We had a couple of negatively geared properties as well)

I would also love to hear of a good accountant. We live in NZ and have a few negatively geared properties in NZ and my husband works and pays tax in OZ. We were led to believe that the losses would accumulate until such time that he earned an income back in NZ but we have just been told today that this is not the case, losses would only accumulate if we had no income and paid no tax.

[Rosco]

Hi,

Tax can vary depending on your exact circumstances.

First part is whether tax resident in Aussi or NZ. Most likely if family still in NZ, then would be a NZ tax resident. So will be taxed in Aussi, as work there, and then also have to return this gross income in NZ with the Aussi tax credits attached. If over paid tax, tough and no refund in NZ. If under paid tax (ie Aussi tax too low), then have to pay any extra.

So rental losses will probably be wasted, unless short of tax. Ie can't get Aussi tax refunded in NZ.

In some situations you can legally avoid Aussi tax, but not if you are an employee.

Hope this helps

Ross