Living and Working in New Zealand

Quick links: Accommodation / Bank Accounts / Phones / Healthcare / Pay & Bens / Tax / Visas / Travel

Accommodation

You can find property for rent through rental agencies, estate agencies and in the small ads in local newspapers. You should arrange to view an advertised property straight away, as the best ones are snapped up quickly.

New Zealand landlords and agents are notoriously inventive in their descriptions (although legislation has been introduced to try to curb this) and they can make the shabbiest, most tumbledown ‘villa’ sound like a palace. If you use an agency or estate agent to find a rental property, t hey will usually charge at least one week’s rent as commission.

It’s possible to arrange to rent a house or flat before you arrive in New Zealand and several immigration consultants can arrange rentals for you. Bear in mind that properties obtained through these sources are often more expensive than those obtained locally.

When renting property in New Zealand, it’s usual to sign a tenancy agreement, although the Department of Building and Housing issues a standard agreement for landlords and tenants. If your landlord uses this agreement and you’re happy with the details, it isn’t usually necessary to have it checked by a lawyer as the terms and conditions are simple and written in “non-legal” language.

Most tenancy agreements are on a periodic basis, which means that the tenancy continues indefinitely until either party gives notice. A tenant is required to give 21 days’ notice to end a tenancy, but a landlord must give 90 days, except in exceptional circumstances.

When you take up a tenancy, you must pay a bond to the landlord, which is usually the equivalent of one or two weeks’ rent, although legally it can be up to four weeks. The bond isn’t held by the landlord but by the Bond Processing Unit of the Tenancy Services Centre and the landlord must pay your bond to the Unit within 23 working days of receiving it. At the end of the tenancy, the Bond Processing Unit refunds your bond less the cost of any damage, for which you’re responsible under the standard tenancy agreement.

Rent is usually paid fortnightly. The landlord must pay rates and home insurance, although your belongings may not be covered under the landlord’s policy and you may need to take out separate insurance for these.

As of January 2007, the "average" price for a two-bedroom inner-city apartment was $372 per week. Expect to pay anything from NZ$100 - $200 for a room in a shared flat. Inner city suburbs such as Ponsonby, Remuera and Herne Bay command prices in the upper bracket but have the added advantage of minimising your travel expenses.

Local papers and New Zealand's main paper, the New Zealand Herald advertise flat shares. For more information please visit: www.nzherald.co.nz

Real estate agencies - the following are the market leaders:

Barfoot & Thompson
Harcourts
LJ Hooker
Professionals

Bank Accounts

Savings banks in New Zealand were traditionally mutual organisations owned by their members or investors, which concentrated on personal savings accounts and mortgages for residential property. However, deregulation in the financial sector during the ’80s allowed commercial banks to enter this market.

Most individuals and businesses in New Zealand carry out their banking, including savings, loans, mortgages and day-to-day transactions, with one of the registered commercial banks.

Banks operating in this sector include:

Some banks are primarily internet-based, such as TSB, while the large insurance group, AMP also offers banking services, as does the New Zealand Post Office, under the name Kiwibank.
All New Zealand banks are efficient and highly automated. Normal banking hours are from 8.30 or 9am until 4.30pm, Mondays to Fridays, although banks may stay open for half an hour later one evening a week. Banks don’t open at weekends and are also closed on public holidays, although bureaux de change open longer at weekends.

Opening a bank account is straightforward in New Zealand. You'll need as much ID as possible, including your passport, proof of address (bills, rent receipts or a lease), a letter from your employer, bank statements and a letter/reference from your bank at home - ensure you get this from your bank before you leave. You can also set up a bank account in the UK before you go, by contacting your bank at home.

Mobile phones

The main mobile phone providers in New Zealand are Vodafone and Telcom.

Healthcare

New Zealand provides ‘free’ or subsidised healthcare to its citizens, permanent residents and certain visitors. If you’re a national of a country with which New Zealand has a reciprocal agreement you can also receive state health benefits. The Commonwealth Government has signed reciprocal healthcare agreements with Finland, Italy, Malta, the Netherlands, New Zealand, Sweden, the United Kingdom and the Republic of Ireland. For more information, please refer to the British High Commission Website

Medical treatment required as the result of an accident is not covered by the state healthcare scheme but by the accident compensation scheme operated by the Accident Compensation Corporation. Medical benefits paid by the ACC are more comprehensive than the basic state health scheme and include all treatment.

In all other cases your first point of contact is your family doctor. It’s advisable to find and register with a doctor as soon as you arrive in a new area, although you can usually turn up at any doctor’s surgery and receive prompt attention. Telephone directories contain a list of local doctors in the preface.

Most doctors’ surgeries are well equipped and often take the form of health centres or group practices. Many have their own nurses who are highly trained and qualified to prescribe drugs and administer treatments, a cheaper alternative to seeing a doctor.

Under the state healthcare scheme, a flat rate is levied for each visit to a doctor, irrespective of the nature of the visit. The basic consultation fee is from $45 to $55 and visits at night and weekends cost $10 to $15 extra.

Healthline originated as a pilot scheme in four areas of New Zealand, providing 24-hour health advice from trained nurses. The scheme, similar to those in Australia, the UK and the USA, has since been expanded to provide a national service. Healthline can be contacted on freephone 0800-611 116.

Most dentists in New Zealand are in private practice, as the public health scheme doesn’t extend to dentistry, except in the case of children. To find a good dentist, seek advice from colleagues or friends, or consult your local telephone directory. It’s wise to shop around, as charges can vary considerably, particularly for extensive repair work. Information about dentists and dentists’ fees can be obtained from the Dental Council of New Zealand.

Pay & Benefits

New Zealanders have an appreciation of ‘old-fashioned’ and anyone who arrives with a strong work ethic has something of a head start in the job market. There’s a marked difference between salaries in the major cities of Auckland and Wellington and in the rest of the country, where they’re often up to 20 per cent lower.

Executive and professional salaries are typically lower than in other developed countries such as Australia, France, Germany, Japan, the UK and the USA, although a lower cost of living, particularly housing, compensates. The average salary for heads of major companies is around $250,000.

New Zealand's employers don’t traditionally shower executives with fringe benefits nevertheless, company cars are widespread at executive level, as are health insurance benefits and superannuation or pension schemes.

Productivity bonuses and profit sharing may be offered. Relocation costs and contributions towards housing expenses are usually offered only to employees with particularly rare skills, but it’s always worth asking.

Tax

The rates of income tax in New Zealand are below average for a developed country. The system is also designed to enable citizens to prepare and file their own tax returns, although if your tax situation is complicated you may need to seek advice from an accountant.

Every taxpayer in New Zealand is required to complete a Tax Code Declaration (form IR 330) when they start employment. You will be given the form by your employer, who will forward it to the IRD on completion – do this carefully as the amount of tax you pay is based on the information provided.

Superannuation is a compulsory pension contribution, currently 9% of your salary, automatically paid on your behalf by your employer. Earnings of under $450 a month do not qualify for superannuation.

Social security is largely non-contributory in New Zealand and neither employees nor employers officially make contributions. In practice, however, employees and the self-employed must contribute to the Accident Compensation Corporation scheme, which provides compensation in the event of an accident. ACC contributions are deducted from salaries, via the pay-as-you-earn (PAYE) system at the rate of $1.20 per $100 of liable earnings.

Government benefits, collectively known as ‘government transfers’, aren’t conditional upon having contributed to the scheme. Unemployment and sickness benefits, for example, are available to all New Zealanders and permanent residents irrespective of their employment history.

If you are planning to work in New Zealand, you must obtain a tax file number from the Inland Revenue Department in New Zealand. Further details on the New Zealand tax system can be found at www.ird.govt.nz

Visas

Work visas are granted to foreigners only when no suitable New Zealand citizen or resident is available to do a job. Each case is treated on its merits, taking into account the availability of local labour.

To obtain a work visa you must have a firm offer of employment before applying to the NZIS. You can get this process under way in your home country or apply once you arrive in New Zealand. The visa fee is between $150 and $290, depending on where it is issued and is non-refundable, even if your application is rejected.

Travel

Buses are a relatively cheap and environmentally friendly way to get around New Zealand and travelling a long distance in a bus can be a safe and relaxing way to travel.

InterCity Coachlines is New Zealand’s national coach company, with services connecting over 600 destinations nationwide. Naked Bus provides daily point-to-point services with very low prices. You may be able to find $1 advance tickets on their website. Their services cover the country with daily buses. Newman’s Coaches, the sister company of Intercity Coach, also provides point-to-point travel and daily sightseeing tours to all major tourist destinations in both the North and South Islands.

To legally drive in New Zealand you need to be at least 18 years of age and hold a valid driver’s licence from your home country. It is worth noting that if you plan on staying and driving in New Zealand for more than a year, you will then need to get a New Zealand driver's license.

Car rental firms range from the familiar multi-national big brands through to small local car rental firms. The big names can be found throughout New Zealand and offer the biggest and newest range of rental vehicles. However they are generally more expensive.

Public transport in Wellington is less developed than in other world capitals, as it is a very compact and pedestrian-friendly city. However, if you don’t feel like walking around or riding a bicycle, there are buses, commuter trains and suburban ferries.

Wellington has an extensive network of buses, including a significant number of lines served by electric trolleybuses. Full information on routes and fares can be found at Metlink Website. Bus fares use a zone structure and nearly the entire city of Wellington exists within three zones. If you plan to use the bus extensively, you can buy an all-day, central Wellington, Daytripper bus pass for $5 which will allow you unlimited trips within zones 1 to 3. In addition, 10-trip fare cards are available from convenience stores and kiosks, which provide approximately a 20% discount off prices.

The train is the best form of public transport between the city and the Hutt Valley. Departing from Wellington station, tickets can be bought either at the station or from the conductor on the train.

Taxis cost approximately $2 for flagfall plus $1.70 per kilometre. Executive Taxis offer a professional service and a larger cab at $1.80 per kilometre. Wellington Combined taxis are arguably the most popular with locals and certainly the easiest to spot, with their distinctive blue roof-mounted signs.