Do I stop being a NZ tax resident the day I fly to Australia?

Not automatically. You only cease NZ residence once you both lose your permanent place of abode in NZ AND are away for more than 325 days in any 12-month period. If you keep a NZ home you live in, you can stay NZ-resident even after moving.

How many days must I be away from NZ to become a non-resident?

More than 325 days in any 12-month period — but only if you have also lost your permanent place of abode in NZ. Both limbs must be met; the day-count alone is not enough.

Do I still pay NZ tax after I move to Australia?

As a non-resident you remain taxable in NZ on NZ-source income only — for example NZ rental income or a NZ business. NZ interest, dividends and royalties are taxed via non-resident withholding tax (NRWT), usually at a reduced rate under the NZ-Australia double tax agreement.

When do I become an Australian tax resident?

Generally from the date you arrive in Australia to live. The ATO treats you as a resident from your arrival date, and you complete a part-year residency return for that first Australian income year.

Do I still need to file a NZ IR3 in my departure year?

Usually yes. You file a part-year IR3 covering the period you were NZ-resident, declaring worldwide income up to the date residence ends, plus any NZ-source income after that.

Can I be tax resident in both NZ and Australia at once?

Yes, briefly, if you keep a NZ permanent place of abode while also residing in Australia. The NZ-Australia double tax agreement tie-breaker then decides which country has primary taxing rights.

Leaving NZ for Australia: When NZ Tax Residency Ends

Moving from New Zealand to Australia is a common cross-Tasman relocation, but your NZ tax residence does not switch off the moment your flight lands. NZ residence ends only when two separate conditions are both met, and until then you remain taxable in NZ on your worldwide income. This guide covers how NZ residence ends, the part-year return you file, what stays NZ-taxable, and when Australia starts taxing you.

How NZ tax residence actually ends

Under section YD 1 of the Income Tax Act 2007, you stop being a NZ tax resident only when you satisfy both of these limbs:

You do not have a permanent place of abode in New Zealand, AND
You are away from New Zealand for more than 325 days in any 12-month period.

Meeting just one is not enough. This mirrors the 183-day and permanent-place-of-abode tests that make you a NZ resident in the first place.

The 325-day absence test

You must be physically absent for more than 325 days in any 12-month period. The days need not be consecutive, so short trips back to NZ are counted in. Note the asymmetry: parts of days you are in NZ (such as the day you leave) do not count toward the 325 absent days, which slightly tightens the test versus the arrival count.

Losing your permanent place of abode (PPOA)

The harder limb for most people is losing your permanent place of abode. PPOA is about whether NZ remains the centre of your habitual residence — not just where you sleep. Relevant factors include whether you keep a dwelling available to live in, your continuity of use of it, your intentions, and your personal and economic ties such as family, employment and bank accounts.

Selling or genuinely letting out your NZ home, moving your family across, and cutting day-to-day ties all point toward losing PPOA. Keeping a house you can move straight back into, with family still here, usually means you retain PPOA — and therefore stay NZ tax resident while living in Australia. This is why many Kiwis in Australia never actually cease NZ residence.

The departure-year IR3

In the NZ tax year you leave (1 April to 31 March), you typically file a part-year IR3 return covering worldwide income earned while you were still NZ-resident, up to the date residence ends, plus any NZ-source income earned after you become a non-resident.

Because NZ taxes residents on worldwide income, salary, investment income and overseas earnings up to your cessation date all belong on that return. If overseas tax was paid, the double tax agreement and foreign tax credit rules prevent the same income being taxed twice.

What stays NZ-taxable as a non-resident

Becoming a non-resident does not sever NZ entirely. You remain taxable in NZ on NZ-source income, such as rental income from a NZ property, income from a business carried on in NZ, and certain NZ employment or director income.

NZ interest, dividends and royalties paid to you as a non-resident are non-resident passive income, taxed through non-resident withholding tax (NRWT), deducted at source by the NZ payer. The rate depends on the double tax agreement with your country of residence — for a non-resident living in Australia, the NZ-Australia DTA generally reduces the NRWT rate on interest and dividends below the domestic default. The NZ payer handles the deduction, so this income is often taxed without you filing for it separately.

You become an Australian resident from arrival

On the Australian side, you generally become an Australian tax resident from the date you arrive to live. The ATO asks for the exact date you became a resident on your first return and applies part-year residency treatment for that income year, with a pro-rated tax-free threshold. From your resident-from date, Australia taxes your worldwide income (subject to the temporary-resident rules and the DTA).

The resident-from-date concept matters: there can be a short window where you are a NZ resident (still holding PPOA) and an Australian resident (already arrived) at once. The NZ-Australia DTA tie-breaker — permanent home, centre of vital interests, habitual abode, nationality — then decides which country has primary taxing rights for that overlap.

Worked example

Liam leaves Wellington for Melbourne. Liam, a NZ citizen, flies to Melbourne on 10 September 2026 with a permanent job. He sells his Wellington house, his partner moves with him, and he closes day-to-day NZ ties but keeps a NZ savings account and a small NZ rental.

PPOA: With his home sold and family relocated, he loses his NZ permanent place of abode around his departure date.
325-day test: Staying in Australia from 10 September 2026 with only a 1-week return visit, by around late August 2027 he has been absent more than 325 days in a 12-month period. Both limbs are now met, so his NZ residence ceases — effective from the September 2026 departure, the point both conditions began to apply.
NZ IR3 (2026-27): He files a part-year IR3 declaring worldwide income up to his cessation date, then only NZ-source income afterwards.
As a non-resident: His NZ rental stays NZ-taxable and he files for it. Interest on his NZ account is taxed via NRWT, deducted by the bank at the reduced NZ-Australia DTA rate.
Australia: He is an Australian tax resident from 10 September 2026, lodging a part-year residency return for the 2026-27 Australian income year with a pro-rated tax-free threshold.

Practical checklist when leaving NZ

Diary your departure date and the date you lose PPOA (often the same).
Track your absence to show more than 325 days away in a 12-month period.
File a part-year IR3 for the departure year.
Tell NZ payers you are a non-resident so NRWT is applied.
Record your Australian resident-from arrival date for your first AU return.

For a side-by-side comparison and the full walkthrough, see the Moving to Australia from NZ hub.