Apply New Zealand Bank Account Before IRD

According to the new ruling, effective on 1st October 2015 onwards, all international applicants ought to have a New Zealand bank account number before applying a New Zealand IRD number. This bank account number is required in the IRD application form.’

Bank First Then IRD

For those who are in the midst of preparing all the things needed for your New Zealand working holiday, make sure you head to a New Zealand bank before the IRD office. 

By the way, here are the documents that you need in order to apply a IRD account:

• Passport
• Driving licence or utility bill statement 
• Proof of your New Zealand bank account is fully functional and active. (Internet banking print out is acceptable) Please refer HERE 
• Most recent tax statement (optional)
• New Zealand Work Visa (Printed on your passport)
• Fill up IR742 application form

New Zealand Working Holiday Tax Code

Usually on the first day of your work, you will be required to fill up your tax code and IRD details.

New Zealand Working Holiday Tax Code

• M for person who has only one job, and that job is the primary job.
• WT for schedular payments.
• CAE for the earnings of casual agricultural employees.
• NSW for the earnings of non-resident seasonal workers.
• STC for a special tax code. This is a tax rate worked out to suit your employee’s individual circumstances. It usually applies when using one of the standard tax codes will result in too much or not enough tax being deducted.
• S for second job with a lower income.

New Zealand Working Holiday Tax Code

Which tax code a working holiday maker should choose? Working holiday makers can use either tax code M or CAE.

Which tax reduction is lower? CAE tax rate is lower than M. CAE tax deduction is depending on your earnings. If you earn less than NZD 14,000, you will be waived from paying tax. However, if you earn more than NZD 14,000, then you have to pay tax.

However, most of the working holiday makers don’t know how much they are going to earn in a year, therefore M is the better option.

What if I have a second job, what tax code should I write? Your tax code for the second job is S.

Tax Return

What If I pay more than I suppose to? Don’t worry, that’s where the tax return kicks in. Working holiday makers can apply a tax return after they are done with their working holiday. All the extras, will bank in back to their New Zealand account or a cheque will post to their correspondence address.

New Zealand Working Holiday Tax Rate

What are the New Zealand Working Holiday tax rate? How much tax will be deducted from my pay? New Zealand tax is depending on how much you earn in a year.

• If you earn up to NZ$14000 you will pay 11.95%
• If you earn from NZ$14001 to NZ$48000 you will pay 18.95%
• If you earn from NZ$48001 to NZ$70000 you will pay 31.45%
• If you earn from NZ$70001 and over you will pay 46.45%

Usually most of the New Zealand Working holiday maker will get either 11.95% or 18.95% of tax deduction.

New Zealand Working Holiday Tax Rate

New Zealand offers a very comprehensive tax system. It’s called Pay As You Earn (PAYE). How to calculate your PAYE? I highly recommend working holiday makers to try out the Online PAYE calculator.

10 Money Saving Tips In New Zealand

Save, save, save is the way to earn that money for your skydiving, bungee jumping, glacier guiding, waitomo cave adventure, water rafting and many more. So, how to save money in New Zealand?

10 Money Saving Tips In New Zealand

There are a few ways to save money whether you are staying permanently in one place or on the go.

• Cook your own meals – Dining out in New Zealand is costly. A meal cost, may as same as your one week grocery bill. Furthermore, self cooking allows you to eat the food that you usually have back home.
• Free food shelf – Free food shelf is a place where travellers left their unwanted or unfinished food or ingredients behind. Feel free to take them or eat them, it is for FREE!
• Work for accommodation – You can work in hostel, farm (WWOOF) in order to have a place to stay and maybe food. This is a great option to cut down your travel expenses and get to know the locals.
• Discount coupons – Cut those discount coupons from magazines or the supermarket flyers. Every cent count.
• Promo tickets – Grab those flight, bus, train promo tickets. Some bus ticket are from as low as NZD 1!
• Share petrol – If you are driving in New Zealand, find a travel buddy to share your fuel expenses. Or simply post your itinerary in social media or hostel, in order to find someone to travel with you.
• Share food – Once you settled down, share your food cost with your roommates. It is cheaper to cook for several person than alone. Furthermore, you can save your time, if its not your roster to cook for that day.
• Couch Surfing – If you are in the travelling mode, and plan to stay several days in town, find a host, and stay a few nights for FREE.
• Walk – Whether is hiking, tramping or jungle trekking, it is the only way to explore New Zealand new and secret awesome landscape. Most important of all, it is FREE!
• Working holiday starter – Many tips are included in the Starter Pack. They are designed to help you save money!

How’s New Zealand Weather and Climate?

Source : Working Holiday Starter

If you are a first timer to a 4 seasons country, New Zealand is a great training ground. New Zealand has mild and comfortable climate all year round. In summer, temperatures hover around the mid-twenties. In winter, south island is colder than north, expect around 10-15ºC in the north and 5-10ºC in the south.

How’s New Zealand Weather and Climate?

New Zealand weather is hard to predict sometimes. It is normal to experience different weather in one day. So, if you are spending the day outdoors, be prepared with extra layers to put on.

The country is known for its “sun showers” – a very light rain in a sunny day. Most of New Zealand receives over 2000 sunshine hours a year, and Blenheim is the sunniest town in New Zealand. 

The warmest months of the year are December, January and February and the coldest months are June and July.

Best Time Visit New Zealand

Visit New Zealand during all the 4 seasons, because each season has its own highlights and it is important to note that away from alpine areas, winter is fairly mild. Therefore, nothing to worry about, you won’t be freezing cold. However, be prepared for sudden changes in weather and temperature, if you’re going hiking or doing other outdoor activities.

How’s Things Cost In New Zealand?

How Things Cost In New Zealand? Some things may seem more expensive and others cheaper. As always, cost of imported items are similar to what you find in other countries, out of New Zealand.

According to the latest international survey, Auckland ranked 21st and Wellington 29th, in the most  expensive city to live in survey. If you are from Singapore, Zurich, Hong Kong, Geneva, Paris, London, New York, Copenhagen and Seoul, New Zealand living expenses is relatively cheaper. However, if you are not, New Zealand may seem expensive to live in.

Malaysia and New Zealand Living Cost

According to Numbeo, the cost of living in New Zealand is 94.19% higher than in Malaysia (aggregate data for all cities, rent is not taken into account). Rent in New Zealand is 189.04% higher than in Malaysia (average data for all cities). So, Malaysian working holiday makers, you will find the things are expensive once you convert the currency. However, things will become different once you work in New Zealand.

Most Expensive Things In New Zealand

• Food and groceries – The price changes from season to season. You may find some vegetables is cheaper during summer, but expensive during winter.
• Public transportation – The city bus and train fare are fixed according to zone. NZD 1 to 2 increment for every subsequent zone. Taxi fares starts at NZD 3 to 5, and increase NZD 3-4 for every KM.
• Internet – Approximately NZD 50 for 3GB data, Internet is super expensive if you are in rural area.
• Cigarette – Average price for a packet of cigarette is NZD 23 and it might hike up to NZD 30 in the future.
• Electricity – If you are the one who are paying the bills, a month utility bills may cost you NZD 335 (for 2 person in a 85m2 square flat). The bills will go higher during winter.
• Room rental – Average room rental in New Zealand is about NZD 150 per week per person. Room rental is higher in the big cities.

New Zealand Travel Expenses

With the money I earn during my working holiday, will I able to cover my travel expenses? What are the travel expenses in New Zealand?

New Zealand Travel Expenses

Your travel expenses is depending on your traveling style and what are your MUST do list. It is realistic to set a spending from NZD 75 to NZD 100 per day, for your food, travel and accommodation needs.

Accommodation & Food In New Zealand

A hostel in New Zealand cost about NZD 25-NZD 35 per night, and a motel around NZD 130 per night. The cost of eating out with a ala-carte meal is range from NZD 10 to NZD 20. A cup of coffee is approximately NZD 5, and a beer is NZD 7.50.

Therefore, if you are a budget traveller, hostel and cook your own meal are the best choice. You can get all your food and other necessities in big supermarkets, such as Countdown, Pak N Save.

Getting Around New Zealand

There are many ways to get around. You can self drive, take a public transport or simple cycle your way! New Zealand buses are very convenient. You can get bus passes, or grab promo tickets to plan your own route. Spend about NZD 500 for 20 trip bus + ferry with Naked Bus, or grab their NZD 1 tickets during promotion.

Must Do Activities

Most of the adrenalin or breath taking activities mark its selling price at NZD 100 and above. For example, the glacier heli hike (NZD 449), the bungee jump (NZD 320), the fly your own aeroplane (NZD 199), the white water rafting (NZD 229), the skydiving (NZD 399) and the list goes on and on. So, list out your must do list, and plan it according to your budget.

If you don’t have any money of it, don’t worry, hiking or jungle trekking is free of charge. On foot, is the best way to access to tourist-less spots, where you can have the whole magnificent view by yourself.

New Zealand Living Cost

How much is the New Zealand living cost? Will I be able to save some money to send home, if I am just a working holiday maker? How long can I survive with the money I brought over to New Zealand?

New Zealand Living Cost Per Week

New Zealand living cost is depending on what country you are from and which part of New Zealand you choose to settle in. Living cost in cities, such as Auckland Wellington, Christchurch are higher than the any towns in New Zealand. A room rental in the city is about NZD 150 to NZD 220 per week.

Here are the list of expenses in New Zealand and a rough calculation.
1. Food and other supermarket purchases – NZD 150
2. Car WOF/Maintenance/Fuel – NZD 30 (If you own a car)
3. Car pool/Public transport – NZD 30 (If you don’t have a car)
4. Phone (local, national and international) and Internet – NZD 10
5. Rental – NZD 150

Total Expenses is approximately NZD 340.

How Much Savings Per Week

A take home pay  for a working  holiday maker is between NZD 400 to NZD 600. We take NZD 500 median. Therefore, you can save approximately,  NZD 183 to NZD 153 per week in your bank account. NZD 732 to NZD 612 per month, which is good enough for your travel plans later.

How Long Can I Survive With The Money I Bring Over

it is depending on how much you bring over to New Zealand. If you are jobless, and you need to stay in backpackers or hostel. The hostel fee is about NZD 25 to NZD 35 per night, NZD 175 to NZD 245 per week.

Therefore, the total expenses is approximately NZD 335 to NZD 405 per week.

Let say you bring over NZD 2250 to New Zealand. With the money, you can sustain your living for about 5 to 6 weeks.

Useful Links

For more information about rent price in New Zealand, click HERE.

New Zealand Minimum Pay Wages

New Zealand Minimum Work Wages? New Zealand work wages are reviewed annually. The range of increment is from NZD 0.25 to NZD 1. Currently, New Zealand minimum wages is NZD 15.25 per hour before tax (Starts on 1st April 2016). Employers have to pay at least the minimum hourly wages rate for every hour worked. There is no minimum hours requirement.

New Zealand Minimum Pay Wages

Majority of the New Zealand Working Holiday makers’ wages receive minimum wage for every hour worked. Minimum wage is the gross pay before tax. Take home pay is the amount of money after tax, and  it is given in weekly basis. How to calculate Take Home Pay?

Minimum wage = NZD 15.25 x working hours + 8% holiday pay

Take home pay = Minimum wage  – PAYE – ACC 

How Much Money In A Week

Let say, you work in a typical factory, and your gross income weekly is NZD 610.Your take home pay (by using the PAYE calculator) after tax reduction will be NZD 513.62 weekly.

If you like to know how much is your take home pay, click HERE for the PAYE calculator. Just key in your gross pay, and click calculate!

Update Working Holiday Electronic Visa

An electronic visa is a label-less visa. Once you receive your working holiday electronic visa, please check all the written details. It is important to make sure all the details are correct to ensure your smooth entry to New Zealand.

Update Working Holiday Electronic Visa

If you renewed your passport, or typo errors in your e-visa, you need to inform the New Zealand immigration to issue a new e-visa. Updating the working holiday e-visa is very simple and it is free of charge. 

If you insist to have a hard copy label visa, you need to fill up the application form (INZ 1023) and pay a fee for it.

My advice is, choose the label-less visa, the process is easier and faster.

Transferring Details To New E-Visa

Transferring the passport details to a new e-visa is very easy. Please prepare the documents below and email to info.nzsg@vfshelpline.com, or call them at +65 6224 1326.

• Scan image of your old and new passport (Front page and back)
• Name
• Date of birth
• Gender
• Nationality
• Client number

VFS Global Singapore

VFS Global Singapore is the New Zealand visa application center for Singapore, Malaysia, Brunei and other countries.

For more information, please click HERE.