FIF, KiwiSaver & Shares When You Move to Australia (Tax Guide)

Moving from New Zealand to Australia changes which country taxes your investments. While you are a NZ tax resident, the Foreign Investment Fund (FIF) rules can tax your overseas shares on a deemed-return basis. Once you become an Australian tax resident and a NZ non-resident, the FIF regime stops applying and Australia’s capital gains and dividend rules take over. This guide explains the handover, the one-off “final FIF year” calculation, and how KiwiSaver and PIE holdings are treated.

For the residency mechanics behind this, read tax residency when leaving NZ for Australia. The broader onboarding checklist lives on the moving to Australia from NZ hub.

FIF rules stop once you are a NZ non-resident

The FIF rules only apply to NZ tax residents. The moment you cease to be a NZ tax resident, the FIF rules no longer apply to you. As IRD puts it, “The FIF rules will not apply to you as a non-resident taxpayer.”

From that point New Zealand taxes you only on NZ-source income — for example NZ rental income, NZ employment income, or interest and dividends from NZ companies (often via non-resident withholding tax). Your US, UK or other foreign shares simply drop out of the NZ net. You do not file FIF income for them on a NZ return for any period after you became non-resident.

If you are new to the FIF system, the FIF tax overseas investments guide covers the $50,000 de minimis threshold and the FDR and CV methods in detail.

The “final FIF year” deemed disposal

There is one transitional step. For the part-year up to your cessation date, IRD treats you as if you sold your FIF interests at market value immediately before you became a non-resident, solely to calculate that final year’s FIF income. In IRD’s words: “if you become a non-resident taxpayer, you’ll be treated as having sold your interests for market value immediately before the change for the purpose of calculating FIF income.”

This is a closing-out calculation inside the FIF regime, not a separate wealth or departure tax. Importantly, New Zealand has no general capital gains tax and no broad exit/departure CGT on shares. The deemed disposal only crystallises the FIF deemed return for the months you were still resident — it does not tax your unrealised capital gain the way a true exit-CGT regime (such as some other countries operate) would. The main capital-style charge that can still reach a departing resident is the bright-line test on NZ residential property sold within the bright-line period — that is property-specific, not a shares exit tax.

How Australia taxes the same holdings

As an Australian tax resident you are taxed on worldwide income, so the foreign shares NZ used to capture under FIF are now taxed by Australia under ordinary rules.

• Dividends are assessable income in the year received and taxed at your marginal rate (with a foreign income tax offset for any foreign tax withheld).
• Capital gains are taxed on disposal under the CGT rules. Individuals who hold an asset for at least 12 months generally get the 50% CGT discount.

Cost base reset on becoming a resident

Australia softens the transition with a cost-base rule. When you become an Australian resident (and are not a temporary resident), you are taken to have acquired your CGT assets at their market value on the day you became a resident — this excludes pre-CGT assets and “taxable Australian property”. So for your foreign portfolio, Australia generally only taxes the growth from the day you arrived, not the gain you built up while in NZ. This deemed-acquisition rule and NZ’s deemed-disposal rule roughly align the handover at the same market value.

Franking credits on Australian shares

If your portfolio includes ASX-listed Australian companies, becoming an Australian resident unlocks the imputation (franking credit) system. Only Australian residents can use or receive a refund of franking credits attached to franked dividends; non-residents cannot. While you were a NZ resident those credits were of no value to you — after you become an Australian resident you include the franked dividend plus the franking credit in your Australian return and the credit offsets your tax (and can be refunded if it exceeds your liability).

KiwiSaver and PIE holdings as a non-resident

KiwiSaver and other Portfolio Investment Entity (PIE) funds are NZ-domiciled, so they are taxed inside NZ rather than under FIF. Becoming a non-resident does not force you to cash them out, but it changes the rate:

• As a non-resident your prescribed investor rate (PIR) is generally 28%, unless you qualify and elect to be a notified foreign investor.
• You should tell your PIE provider you are no longer a NZ resident so the correct rate is applied.
• For KiwiSaver specifically, the trans-Tasman portability arrangement lets you apply to transfer your balance to an Australian complying superannuation fund once you have permanently emigrated to Australia.

Worked example

Mia leaves Auckland for Sydney on 30 September 2026 and ceases NZ tax residency that day. She holds NZD 120,000 of US ETFs (above the $50,000 FIF de minimis) and NZD 20,000 of ASX shares.

• Final NZ FIF year: For the part-year to 30 September 2026, Mia is treated as selling her US ETFs at market value immediately before she became non-resident, to calculate her last FIF income under her usual method (FDR or CV). She files this on her final NZ return. No NZ tax applies to those ETFs after 30 September.
• No NZ exit CGT: Mia does not pay any separate NZ capital gains or departure tax on the ETFs — only the FIF deemed return for the months she was resident.
• Australia takes over: From 30 September 2026 Mia is an Australian resident. She is taken to have acquired both the US ETFs and the ASX shares at their market value on that date. Future dividends are assessable; future capital gains are measured from the 30 September cost base, with the 50% discount available after 12 months.
• Franking credits: Her ASX dividends now carry franking credits she can finally claim — worthless to her in NZ, useful to her in Australia.

Summary

• FIF stops the day you become a NZ non-resident; NZ then taxes only your NZ-source income.
• A one-off deemed disposal closes out your final FIF year — it is not a general NZ capital gains or exit tax.
• Australia taxes the same holdings on a worldwide basis, with a market-value cost base on the day you became resident and franking credits available on Australian shares.
• KiwiSaver/PIE stays NZ-taxed (PIR generally 28% for non-residents) and may be portable to Australian super.

Related guides

• Tax residency: leaving NZ for Australia — when your NZ residency actually ends
• FIF tax overseas investments guide — FDR, CV and the $50,000 threshold
• Moving to Australia from NZ hub — full onboarding checklist

Sources

• Leaving New Zealand — IRD
• Tax for non-resident taxpayers — IRD
• The bright-line test — IRD
• How changing residency affects CGT — ATO
• Refund of franking credits for individuals — ATO