Australia vs New Zealand taxes (2026): income, CGT and company tax

Australia vs New Zealand tax rates at a glance

Tax	🇦🇺 Australia	🇳🇿 New Zealand
Income tax	Tax-free threshold: AUD 18,200 Next band: 16% Middle band: 30% Upper band: 37% Top rate: 45% Medicare levy: 2%	First band: 10.5% Second band: 17.5% Third band: 30% Fourth band: 33% Top rate: 39% ACC earners' levy: 1.75%
Corporate tax	Base-rate entity rate: 25% General company rate: 30% Franking credits: Available GST: 10%	Standard company tax: 28% Māori authority rate: 17.5% Maximum imputation ratio: 28:72 GST: 15% GST registration threshold: NZD 60,000
Capital gains tax	Inclusion method: Marginal rates Individual discount: 50% after 12 months Effective top individual rate on discounted gain: About 22.5% before levy Company treatment: Generally no discount	General personal CGT: 0% Taxable property gains: 10.5% - 39% Bright-line period: 2 years Main-home exclusion: Available if conditions are met FIF method: Deemed-income rules
Dividend tax	Resident taxation: Marginal rates Franking credit benefit: Offsets company tax paid Domestic non-resident WHT: Often 30% on unfranked Treaty rates: Often lower	Resident shareholder rate: 10.5% - 39% Resident dividend RWT: 33% Maximum imputation ratio: 28:72 Non-treaty dividend NRWT: 30% Fully imputed / treaty outcomes: Often 0% - 15%
Wealth tax	Net wealth tax: 0% Annual federal asset tax: 0% Land tax / stamp duty: State rules apply	Net wealth tax: 0% Annual federal asset tax: 0% FIF treatment: Deemed-income rules Local-authority rates: Council rules apply GST on taxable supplies: 15%
Inheritance / estate tax	Estate / inheritance tax: 0% General gift tax: 0% Super death benefits: Can apply Later CGT on inherited assets: Possible	Inheritance / estate tax: 0% Estate duty: Abolished Gift duty: 0% Estate income: Ordinary rates apply Later property gains: Taxable if a land-sale rule applies
VAT / GST / sales tax	GST: 10%	GST: 15%

Who wins on each tax

Personal income taxNew Zealand

New Zealand tops out at 39%, versus Australia's 45% plus a 2% Medicare levy.

Corporate taxAustralia

Qualifying Australian base-rate entities can pay 25%, below New Zealand's 28% standard rate.

Capital gains taxNew Zealand

Australia taxes gains through income tax, but individuals can usually reduce a gain on assets held over 12 months by 50%; New Zealand has no broad CGT, although property-intention, trading, financial-arrangement and two-year bright-line rules can tax gains as income.

Dividend taxTie

Both impute company tax to resident shareholders: Australian franking credits and New Zealand imputation credits can reduce double taxation, but shareholder marginal rates still matter.

Market accessAustralia

Australia has the larger domestic economy and a deeper capital market.

The verdict

New Zealand is normally the lower-tax choice for a mobile investor: its top personal rate is 39% and it has no broad capital-gains tax.

Australia can still be the practical winner for a larger local market, but its 45% top rate, Medicare levy and broad CGT system raise the cost of residency.

Choose New Zealand for simpler investment taxation; choose Australia when the commercial opportunity justifies the higher personal tax exposure.

How to read this comparison

Australia and New Zealand share close business ties, but their tax systems diverge sharply for investors and high-income residents.

Frequently asked questions

Is New Zealand or Australia better for tax?

New Zealand is usually lighter for investors and high earners, particularly because it has no broad capital-gains tax. Residency and the source of income can change the result.