How does the double tax agreement work between Australia and NZ?

 Author: WendyATO(Community Support)Community Support

5 July 2023

Hi @HarrisonBergman,

Agree, it can be quite confusing when you earn income from overseas but you're an Australian resident for tax purposes.

Firstly, you need to self-assess whether you're an Australian resident for tax purposes refer to our residency tests.

If you're Australian resident for tax purposes and receive foreign income you may pay tax on the income in both Australia and NZ. You could be entitled to an Australian foreign income tax offset.

Australia does have a tax treaty with NZ. Check if you can provide a certificate of residency and overseas tax relief form to the tax authorities in NZ. This is to ask them to either reduce their withholding tax or exempt you from paying tax there.

You can read more about how Australian resident foreign and worldwide income and who holds the tax.

As for your Australian income the tax withheld will be paid to us.