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NZIER Calculator

Posted in Calculators

Will you be better off in Australia?

New Zealand's current personal tax levels are less onerous for high income earners than Australia's. But as Australia's average weekly wage is about 40% higher in Australia, a typical family is much better off in Australia if disposable income is the measure.

This calculator was developed by the economists at the NZIER and first published on their website.

It compares New Zealand's personal tax rules and Working for families with the equivalent policies in Australia. The Australian figures are translated to New Zealand dollars using the purchasing power parity (PPP) values published by the OECD (see note below). There is no adjustment for wage differentials or other costs outside those listed below, but readers will be able to make those adjustments separately using information they have.




1. New Zealand net income is after the deduction of
- individual income tax rates, the independent earners tax credit, and the ACC levy
- Working for Families: family tax credit, in-work tax credit, and minimum family tax credits.

2. Australian net income is after the deduction of
- individual income tax rates, low income tax offset, and Medicare levy
- family tax benefits: plan A and B

3. the latest OECD PPP exchange rate is for 2009. Click on the option if you wish to see that rate, or choose a different exchange rate. Be careful when applying an exchange rate, as the real relevant rate is the one that converts your purchasing power accurately. This is often very different to official currency rates.