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    TaxKilnUK tax guidance
    TaxKilnUK tax guidance

    Moving Abroad → Australia + New Zealand

    🇦🇺🇳🇿Moving from UK to Australia + New Zealand — Tax Framework

    Australia + New Zealand are flagship frozen-pension destinations affecting ~520,000 UK pensioners worldwide (~230,000-250,000 in Australia specifically — the largest single frozen-pension destination). The corridors share frozen UK State Pension plus structurally similar DTAs but differ critically on: AU temporary resident regime (Subdiv 768-R ITAA 1997 — applies for the duration of a qualifying temporary visa with NO statutory 4-year cap) vs NZ transitional resident (s.CW 27 Income Tax Act 2007 — IS statutorily 48 months); AU superannuation guarantee vs NZ KiwiSaver; AU FIRB foreign-property approval requirements vs NZ free purchase post-2022 reforms.

    Below is the framework: UK SRT plus AU ATO four residence tests (resides / domicile plus permanent place of abode / 183-day plus intent / Commonwealth super test) plus NZ IRD 183-day plus permanent place of abode; UK-AU DTA 2003 plus UK-NZ DTA 1983 article-by-article; AU superannuation interaction with UK pension (the most-misunderstood UK-AU topic — QROPS transfer 25% Overseas Transfer Charge plus five-year continuing UK tax liability under PTM112000); AU Subdiv 768-R temporary resident regime distinct from NZ s.CW 27 transitional resident; frozen UK State Pension with legal context — Carson v SSWP UKHL 37 (2005) plus Carson and Others v UK ECtHR Grand Chamber (Application no. 42184/05) 11-6 confirmed legality at every judicial level — and statistical scope; AU FIRB foreign property approval, foreign buyer surcharges, and AU CGT main residence exemption removed for non-residents from 2019.

    ~230-250k UK pensioners frozen in AU (largest single destination); ~520k worldwide frozen affected. Cross-reference Wave 3 Brief B + APPG on Frozen British Pensions.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    Country overview

    Residence test

    AU ATO residence: four tests — (1) resides test (TR 2023/1 current ATO ruling); (2) domicile plus permanent place of abode test; (3) 183-day plus usual-place-of-abode-and-intent test; (4) Commonwealth superannuation test. Australian tax year 1 July to 30 June. Temporary resident definition (sub-class 482 plus select other temporary visas) gives exemption from AU tax on most foreign income plus foreign capital gains under Subdiv 768-R ITAA 1997 for the duration of the qualifying temporary visa — NO 4-year statutory cap (correcting common misconception that was a conflation with the NZ transitional resident regime). NZ IRD residence (s.YD 1 ITA 2007): (a) 183 days in any 12-month period; OR (b) permanent place of abode in NZ. NZ transitional resident regime (s.CW 27 ITA 2007): up to 48 months exemption from NZ tax on most foreign income for new immigrants non-resident in the prior 10 years; excluded — foreign employment income.

    Key tax structures

    Treaty key features

    The framework

    Residence — UK SRT plus AU 4-test plus NZ 183-day →

    UK SRT plus AU ATO four residence tests (resides / domicile / 183-day / Commonwealth super) plus NZ IRD 183-day plus permanent place of abode. TR 2023/1 current ATO resides ruling. UK fiscal year vs AU 1 July-30 June vs NZ 1 April-31 March asymmetries.

    UK-AU DTA 2003 mechanics →

    UK-AU DTA 2003 article-by-article. Article 4 residence tie-breaker; Articles 10-12 dividends/interest/royalties; Article 13 capital gains (UK land retention); Articles 17/19 pensions; Article 23 elimination of double taxation.

    UK-NZ DTA 1983 mechanics →

    UK-NZ DTA 1983 article-by-article. OECD-model alignment. Residence tie-breaker plus pension treatment plus capital gains plus government service.

    AU super plus UK pension interaction (THE big issue) →

    AU Superannuation Guarantee 11.5%→12% plus AU super preservation plus UK pension drawn while AU-resident (DTA Article 17 residence state); QROPS transfer to AU super = 25 percent Overseas Transfer Charge unless AU-resident at time of transfer plus five-year continuing UK tax liability (PTM112000); AFE election at 15 percent under s.305-80 ITAA 1997. The most-misunderstood UK-AU topic.

    AU temp resident (no 4-yr limit) vs NZ transitional (48 months) →

    AU Subdiv 768-R temporary resident: exemption for the duration of a qualifying temporary visa with NO statutory time limit (correcting the common 4-year misconception). NZ transitional resident s.CW 27 ITA 2007: IS 48 months exemption from NZ tax on most foreign income for new immigrants non-resident in the prior 10 years.

    Frozen UK State Pension — AU + NZ →

    UK State Pension claimable from AU + NZ but FROZEN at first-claim rate (no annual triple-lock uprating). Bilateral SS agreement UK-AU terminated for new claimants 1 March 2001 (SI 1992/1312). ~230-250k AU pensioners affected (~520k worldwide). Carson v SSWP UKHL 37 (2005) plus Carson and Others v UK (ECtHR Application no. 42184/05, Grand Chamber 11-6) confirmed legality.

    AU FIRB plus foreign property plus AU CGT main residence →

    FIRB approval required for non-Australian residential property purchases. 2024-2027 outright ban on foreign buyers of established dwellings (Labor policy). SDLT-equivalent plus foreign buyer surcharges (NSW 9 percent from 1 Jan 2025; Vic 8 percent; Qld 7 percent). AU main residence exemption REMOVED for non-AU-residents disposing of AU property since 2019 reform.

    Anti-snake-oil, corridor-specific patterns

    Pattern: QROPS transfer to AU super specialist £5,000+

    Reality: Typically devastating advice. 25 percent Overseas Transfer Charge applies unless the member is AU-resident at the time of transfer (HMRC PTM112000) plus five-year continuing UK tax liability under the same regime. Limited AU super funds appear on HMRC's QROPS list. The transfer is often financially inferior to leaving the UK pension intact and drawing it under DTA Article 17 from Australia.

    Pattern: Frozen pension class action contribution £200

    Reality: Carson v SSWP UKHL 37 (2005) confirmed legality at UK level; Carson and Others v UK ECtHR (Application no. 42184/05) confirmed at European level by 11 votes to 6 in the Grand Chamber. There is no live class action; the policy is judicially settled. APPG on Frozen British Pensions continues to campaign politically but no legal challenge succeeds.

    Pattern: AU temporary resident planning £3,000+

    Reality: The AU temporary resident exemption (Subdiv 768-R ITAA 1997) is automatic for qualifying temporary visa holders — no planning service is required to access it. The exemption applies for the duration of the qualifying visa (no 4-year cap — that is the NZ transitional resident regime, a different statute in a different country).

    Pattern: AU exit tax specialist £8,000+

    Reality: AU has limited true 'exit tax': CGT event I1 on cessation of AU residence plus deemed disposal elections for foreign assets plus super preservation issues. The mechanics are published by the ATO and manageable via a qualified Australian-side practitioner at standard rates.

    Pattern: UK doctor specialist AU registration plus tax bundled £6,000+

    Reality: Medical registration goes via the Medical Board of Australia (AHPRA) — entirely separate from tax. Tax goes via the ATO. Bundling charges a premium for two separable processes. Use AHPRA plus a qualified AU practitioner separately.

    Free plus regulated-body resources

    Destination-country resources

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