Want to learn more about New Zealand?

 

http://www.greatnewzealand.co.nz

Lifestyle

There are plenty of great reasons for you to choose to Live in New Zealand. The principal appeal for people choosing to make New Zealand their home is lifestyle and its balance with work commitments, a beautiful climate and natural environment, and that it is a favourable place to raise children.

Migrants from Eastern and Western Europe, the UK, the USA, Australia, Singapore and South Africa recognise the value of what a New Zealand lifestyle/work balance can hold for them. Most emigrants that decide to move to New Zealand initially travel here to acquire the information necessary in making their choice. Balancing work commitments while enjoying your favorite activities with your family should be of primary priority to you and essentially is what New Zealand is all about. It is important to find out if New Zealand's employment, lifestyle, culture, and leisure are preferential for you and your family.

With this balance in mind, New Zealand businesses retain a productive workforce while contributing to employer and employee satisfaction alike. In decades gone by, many areas of New Zealand were established and built with skilled migrants from immigrant populations. Today, a public life exists in both urban and rural settings which are multi-cultural and cosmopolitan accustomed to immigrant families. All regions of New Zealand today continue to require a variety of skills and experience in order to prosper. Immigrants with specific skills, experience, and assets are needed, with contributions to the local and regional economies greatly valued. With New Zealand's relatively low population and very low population density together with numerous city and town communities, new immigrants successfully find niche environments which allow for their particular skill and lifestyle preferences to be matched with gainful employment.

New Zealanders are known to be highly skilled, well educated, and enjoying a distinctive standard of living. This combined with intelligent rural and urban planning through regional councils has allowed for superbly managed population centers in the cities and rural communities. Local and regional government, political management and skilled labour are well co-ordinated allowing for progressive and dynamic communities to grow and become more prosperous. Making the choice to Live in New Zealand can be of great value for you and your family. Access to public services, educational resources, work life balance, and outdoor leisure activities unparalleled anywhere is something for you to look forward to.

 

 

Climate

The climate and the environment in New Zealand is one of the most varied found anywhere in the world. Its unique location along a distinct belt of volcanic and earthquake activity in the South Pacific has shaped the stunning landscape. The thrilling geological history of New Zealand and its distinctive environment have long fascinated scientists interested in determining its past. Due to its geographic location, and long 80 million year isolation, New Zealand has some of the most exotic and distinctive fauna and flora found anywhere. The beauty of the landscape, the cleanliness and care taken for its preservation, and the variety of activities that the natural environment provides, makes for a great escape for those that choose to live in New Zealand.

Situated between the Tasman Sea and the Pacific Ocean, there is a subtropical climate on the North Island and a temperate one on the South Island. A Southern hemisphere locality, the warmest months of the year are December, January and February, with temperatures ranging from 20-30 degrees Celsius, and the coldest months being June, July and August with temperatures ranging between 1-15 degrees Celsius. Because of the unique geographical landscape of the country and its long narrow shape, the weather changes frequently and can be unpredictable. Moist, tropical air from the north, and cold air from Antarctica together with the mountainous inner section of the country creates dramatic weather patterns, resulting in unique microclimates found throughout the country, some varying within only a few kilometers of each other.

Inland Revenue Department (IRD)

IRD Numbers

An IRD number is an eight-or nine-digit unique identification number issued to you by the IRD. You are required to obtain an IRD number before beginning work or starting a business in New Zealand. You should also apply for an IRD number if you are registering for Working for Families Tax Credits or a student loan, if your child has
a part-time job, or if you apply for child support. You can apply for an IRD number for your children to ensure they pay a lower rate of tax on interest earned on their bank balance. You must supply your IRD number to your employer and your bank to ensure that tax is deducted from any money you earn. If you do not have an IRD number, tax will be deducted at a no-declaration rate, which is higher than the normal rates of taxation.

The New Zealand tax year begins on 1 April and ends on 31 March. It is possible, however, to change your balance date by applying to the IRD. In New Zealand, most tax is taken at the source under the pay-as-you-earn (PAYE) system. Employers deduct tax on salaries and wages. Financial institutions deduct tax on interest as it is paid.
Typically, if you run a business in New Zealand, you will pay income tax in a series of installments throughout the year.
This amount is then reconciled with your business and the actual tax liability at the end of the tax year.
If you have not paid tax on certain income (such as rental income, or self-employed income) during the year, you will be required to file a tax return at the end of the tax year to enable the IRD to calculate your tax liability. In most instances, the IRD will send you all the material you need in order to fulfill this requirement.

All New Zealand residents are required to pay tax on their worldwide income. Non-New Zealand residents must pay tax in New Zealand on any New Zealand sourced income.

Resident withholding tax

Generally speaking, payments of interest and dividends are subject to resident withholding tax (RWT). RWT is deducted at source and paid to the IRD Department, where it is credited against your income tax liability for the year.
If you have supplied your IRD number to the institution from which you will receive your interest or dividend payment, it will deduct RWT at 19.5%. The amount of RWT you are required to pay, however, depends on your level of income.
This means if you earn over $40,000, you should complete a resident withholding tax election (IR 456) form. By filling in the correct rate at which RWT should be deducted, you can avoid a tax bill at the end of the year.
The deduction rates for RWT currently are:

• for individuals earning up to $40,000 per annum: 19.5%
• for companies, and individuals earning between $40,001 - $70,000 per annum: 33%
• for individuals earning over $70,000 per annum:39%
• If you fail to provide your IRD number, RWT will be deducted at the no-declaration rate of 39%.

Goods and services tax

Goods and services tax (GST) is a tax on most goods and services in New Zealand, most imported goods, and some imported services. GST is generally charged at a rate of 12.5% on all taxable supplies. GST is payable on all types of personal and real property except money, and all services except for residential tenancy services and some financial services. Limited exemptions also exist for donated goods and services sold by a non-profit body, and the sale of a business capable of being a going concern.

GST is a value-added tax, collected and payable to the IRD by the person supplying the goods or services. If you intend on conducting a taxable activity that makes supplies in New Zealand, you must register for GST if the following applies to you:

• your annual turnover based on the value of your supplies for this month and the last 11 months has exceeded $40,000; or
• your turnover based on the value of your supplies for this month and the next 11 months is expected to exceed $40,000; or
• you supply GST and/or services with GST included in your prices, ie. taxi drivers who have included 12.5% in their fares.

Turnover is the total value of supplies made (excluding GST) for all your taxable activities. In a normal business, turnover will be the total value of your sales and income, including any grants or subsidies received, barter transactions and imported services.
If your taxable activity has an annual turnover of less than $40,000, you do not have to register for GST, but you can if you wish.

Dual Tax Residency

New Zealand taxes its residents on all worldwide income, regardless of where in the world that income is earned.
It is possible for you to be a tax resident in New Zealand and another country. If this is the case, and the other country also taxes its residents on worldwide income, you may be taxed twice on the same income. New Zealand has double-tax agreements with many countries, however, that decide which country has the first or sole right to tax certain types of income. If offshore income is taxed at source in a country with which New Zealand has a double-tax agreement, you will receive a tax credit, meaning that you will not pay tax on that income a second time in New Zealand.

Tax breaks for migrants

Changes to New Zealand taxation law in recent years have created major benefits for foreign investors. Specifically, under the Taxation Act 2006, new immigrants now automatically qualify for a tax exemption on their individual overseas income. The tax exemption applies to all transitional residents. A new migrant will be deemed to be a transitional resident for at least four years after arriving in New Zealand. Under the new tax exemption scheme, most foreign income earned by transitional residents is tax exempt, including interest, dividends, and employment and bonus income from previous employment. Only income derived from business income relating to services performed offshore, and income received from employment services provided during the exemption period will not qualify under the new tax scheme.

Pre-migration trusts

Once you are no longer a transitional resident and become a New Zealand tax resident, any offshore investments you hold in their own name will be subject to New Zealand income tax. By setting up a foreign trust structure before migrating to New Zealand, however, it is possible for you to minimise New Zealand income tax on your offshore investments after you become a New Zealand tax resident. Intending migrants should seek specialised New Zealand taxation advice before implementing any pre-migration structure. It is also important to obtain offshore tax advice on whether assets can be gifted to the pre-migration trust without giving rise to gift duty or inheritance tax.

Education

The majority of school education in New Zealand is government funded. All children aged five to sixteen in New Zealand must attend school, with most attending schools closest to where they live. Primary and intermediate schools, of which the majority are co-educational, include levels 0 to 8 (ages 5 to 12). Secondary schools include levels 9 to 13 (ages 13 to 19). There are a variety of school types and teaching philosophies for you to choose from to best suit your child's educational needs. Public-State education institutions are government funded, and use the approved New Zealand curriculum. Integrated schools were private in the past, but are now public and state funded, retaining a unique teaching method and/or philosophy while integrating aspects of the New Zealand curriculum.

The majority of integrated schools are Roman Catholic, though many are also Montessori and secular. Private education institutions are not government funded, and depend on private student fees. For these, independent boards provide the curriculum for students which are more often than not in line with the New Zealand curriculum. Private schools in New Zealand are both single sex and co-educational, with most requiring uniforms.

Although the education system in New Zealand is of a very high standard, we recommend that when choosing a school for your child that you first familiarise yourself with the Education Review Office (ERO) and their subsequent reports. Each school in New Zealand provides an ERO report which highlights performance indicators, suggestions for ways that the school can make improvements, and the overall quality of education provided. We encourage you to research each school that you might be considering, and to meet with teachers and administrators to learn more about enrolment schemes and school enrolment zones.

Housing

There are many different housing options for those choosing to make New Zealand home. For most migrants there is good news and by international standards, housing choices are plentiful and affordable. There are, of course, many factors that need to be considered when choosing where to live. The main considerations are usually access to work, schools and public transport as well as the usual everyday facilities such as shops and services. Most migrants tend to rent a property when they first arrive in New Zealand, enabling them to check out the factors mentioned above, to get a better understanding of the market and to retain a measure of flexibility as to where and what are the best options for their first family home purchase. The easiest way to find available rental properties is either through a real estate agent, the internet (of which the best internet site is TradeMe) or local papers. If you do use a real estate agent, it is common that a renter's fee (often called a finder's fee) will be added to your initial bond (deposit) which is more often equivalent to one week's rent.

Financing a property purchase is usually facilitated through the normal mortgage with which you will be familiar from your home country. In New Zealand you will find that getting a mortgage is generally a straightforward process as long as you meet the required criteria of affordability. Banks commonly lend up to 90 per cent of the value of the property (higher in some instances) and repayment terms are usually by way of fixed or floating rates of interest. As you would expect the cost of buying or renting a house is often determined primarily by its location with the major cities, such as Auckland, being the most expensive. Please see the table below as a guide:

TABLE 1:

AVERAGE HOUSE PRICES IN NEW ZEALAND

Auckland $517,000
Wellington $441,000
Christchurch $361,000
New Plymouth $336,000
Dunedin $264,000
Tauranga/Bay of Plenty $464,000
Queenstown $569,000
Hawkes Bay $336,000

Houses for sale are advertised and can be found in a variety of ways; through real estate agents, newspapers, property magazines and the internet. New Zealand also has a very popular open home system that many sellers of property like to use. Open homes are usually held over a weekend for a specific period of time in which all interested parties can view the home for sale and have an opportunity to ask questions about the property before making any decisions about a potential purchase.

In New Zealand there are a number of ways to purchase a home:
1. Real Estate Agent: This is the most common way and one that you will be familiar with in your home country.
2. Private Sale: The homeowners are representing themselves in the sale. The potential purchaser deals directly with the homeowner in all negotiations.
3. Tender: This process involves the owners or real estate agent advertising for offers on their home to be received within a specific timeframe. The person with the highest offer will then negotiate with the vendor or real estate agent to finalise the details, such as actual price (including any chattels) and date of purchase.
4.  Auction: The owners will generally state a minimum price (reserve) that they are willing to accept for their home. The home is then sold to the highest bidder. If the reserve price is not met, the property is then 'passed in.' The highest bidder then has the option to negotiate a sale price with the vendor.

Building your own home is a very popular alternative to purchasing an existing home in New Zealand. There are many specialist housing companies and builders capable of providing such services. Essentially, you will need to purchase an area of land and then decide the type of home you would like to build. There are many options when buying land from rural, where some purchase 'lifestyle' blocks which can amount to several acres through to suburban sections amounting to anything from 600 square metres and up. This option naturally gives rise to a myriad of house styles and the building materials that are utilised. You will be amazed at the range and style of houses that can be found in a typical New Zealand suburb.

Warning: Leaky Buildings!

Are you planning to buy a house in New Zealand? The "leaky building syndrome" may affect 30,000 - 90,000 houses built in the last 10 years. Arm yourself with some facts to ensure buying the wrong house doesn't turn your NZ dream into a real estate nightmare.

In the last 10 years or so, the "Mediterranean look" has become fashionable for houses in New Zealand. Flat or sloping roofs with minimal eaves, and a white or beige plaster finish have been bringing a hint of Greece or Southern Spain to New Zealand's streets.

Unfortunately, some of New Zealand's most fashionable homes are taking in water through the exterior finish - a finish known in the trade as monolithic plaster. Although monolithic plaster looks like plaster, it's actually a synthetic material which is sprayed on the outside of timber-framed houses.

And leaking monolithic plaster is just the beginning of home-owners' woes.

After water has penetrated the plaster, it can soak into the wooden structure of houses. Unfortunately, the timber in modern houses is untreated. Untreated, kiln-dried timber is certainly a plus for New Zealand's "clean and green" image but, as a building material, it's proving to be a serious minus. That's because, once water has penetrated the plaster finish and has reached the wood, the wood rots.

What you should know:

Monolithic plaster finish is found in all grades of real estate, from low cost, right up to the top end of the market.

Producing a weatherproof, monolithic plaster house is a skilled task. If the installers are not highly trained, the finish will be suspect.

Even if the weatherproofing is carried out correctly, there's no guarantee a monolithic plaster finish will remain leak-tight. Heating and cooling can create cracks, as can earth tremors.

Traditional eaves keep a great deal of rainwater away from walls, giving protection even if the building work is poor. Houses with non-existent or minimal eaves, often associated with the Mediterranean look, are susceptible to wind-driven rainwater penetration.The Government is working on the basis that the repair bill per house will be as much as 15% of the construction cost. (A house costing $300,000 might have a construction cost of roughly $150,000 and a similar land value.)

Monolithic plaster finish is not only a problem in New Zealand. Builders in America and Canada have been facing lawsuits for almost a decade now as problems emerge in these countries with the same finish. Builders in New Zealand are also facing lawsuits and, like most forms of legal action, these have been protracted.

A toxin-producing fungus that thrives in damp conditions, stachybotrys, is claimed to be associated with rashes, respiratory problems and chest infections. Scientists have confirmed the presence of stachybotrys in water-damaged homes around New Zealand.

Would I buy at house with a monolithic plaster finish? Our own opinion is that we would rather be safe than sorry. I personally wouldn't consider buying this type of house. Most of the New Zealanders I've spoken to are of the same opinion. Sadly, there are still vendors and real estate agents who will not disclose adverse issues with a building, therefore it is vital that you carry out your own independant investigation in the house, townhouse or apartment you may be thinking of buying. Do not trust the word of a vendor or real estate agent! Of course, whether you choose to be guided by these opinions is entirely up to you. If your heart is set on having a house with the Mediterranean look, proceed with caution, or consider having one built using traditional, time-tested materials and methods. Always (and we mean always!) undertake a pre-purchase checklist which includes the following:

* A building inspection by a qualified and independant builder. Always insist on a moisture level reading. The builder should also be looking for any earlier invasive testing.

*  Obtain a copy of the LIM report from your local council.

* Obtain the most up to date copy of the Body Corporate minutes, including the last three years minutes. Ask your solicitor to advise you if there are any concerns.

* Contact the Weathertight Homes Resolution Service (WHRS) to see if any claims have been lodged with your apartment/townhouse.

* Give all reports, minutes etc to your lawyer so that he or she can advise you of any concerns.

Above all else go with your gut feeling! Take a good look at the external physical appearance of the dwelling you're about to purchase. Look for cracks, staining, rust marks around the exterior cladding. If you do not have a good feeling about it then walk away! Do not rely on what the real estate agent says as often they have one interest only and thats to sell so that they can collect their commission!

Health Care Information

New Zealand’s health system provides a high standard of care, at an overall cost which is modest by international standards.

Free Public Hospitals, accessible to all.
The backbone of New Zealand’s health system is a network of “Health Boards”, organized by region, providing high quality hospital care and coordinated community health programmes. Services from these Health Boards are taxpayer funded and costs are not charged directly to patients who are New Zealanders. While, clearly, not every single regional hospital can provide world class services in every conceivable specialty, the system as a whole, (with patient transfers between facilities required in some cases), does do so, and is the primary reason for New Zealand’s international reputation for excellence in health care.

Private Hospitals, supported by Insurance.
One of the ways the publicly funded, free system achieves its efficiency is by engaging in a degree of “rationing” of non-essential services that allows a private, fee-for-service hospital system to thrive alongside the “free” public system. If you are faced with an immediate life threatening illness or accident you will receive immediate world class care in the public system; but if faced by an “elective” (that is, not immediately life threatening) problem, say a hernia or varicose veins, you may find yourself on a “waiting list” for service in the public system, in which case you may elect to have immediate treatment in a private hospital. This private system is supported by a non-compulsory heath insurance industry, to which many New Zealanders subscribe. The growth of the private sector is not subject to Government control so, to a degree, the demand for urgency of any particular form of treatment can be a matter of perception or public opinion. For example, quite complex heart surgery may be undertaken in either the Public or Private sectors; depending on patient choice.