- Looking for the cheapest way of sending money to New Zealand: bank or a money transfer service?
- Find out what laws and regulations you should know about before sending money to New Zealand.
- Compare money transfer services, then get an AUD to NZD quote.
Whether you're investing in real estate or providing financial support to loved ones abroad, sending money to New Zealand from Australia isn't complicated. Beyond transfer fees and conversion rates, you should also be aware of money transfer regulations and taxes.
In this guide, we'll give you the basics of sending money to New Zealand from Australia [AUD to NZD].
Need to transfer money to NZ from Australia?
Best ways to send money to NZ
Looking for more options? Compare money transfer services.
Common reasons people transfer money overseas to NZ
With more than half a million New Zealand expats living in Australia and a thriving Australian expat community in New Zealand, the two countries share numerous ties.
The most common reasons people transfer money to New Zealand from Australia include sending money back home to family and investing in real estate. Other personal and business reasons include:
- Emigrating to New Zealand
- Getting married in New Zealand
- Paying for education overseas
- Running an ecommerce business
- Paying suppliers or contractors
- Paying overseas freelancers or employees
- Making charitable donations
Send money for business vs personal purposes
Whether you’re a business or an individual, there is no restriction on how much money you can transfer to New Zealand.
The recipient’s bank or financial institution will monitor all transfers and report any suspicious activity.
Banks must also collect information about the sender and recipient. In some cases, the bank can ask for evidence on personal details, money provenance, and identity, in order to fulfil their legal obligations.
The recipient may have to pay tax on the received sums if the payment is considered income. Since 2011, New Zealand has abolished the gift duty, which means the recipient will not have to pay tax on gift money.
Why you shouldn’t send money overseas using your bank
Transferring money to NZ through your bank is secure but it is unlikely to be the best option. Banks are trustworthy but generally more expensive and slow when it comes to money transfers compared to specialist money transfer companies.
Senders have to pay international transfer fees (generally, a fixed fee is charged per transfer) and lose money due to the higher margins applied to the FX conversion rate.
Specialised money transfer companies are cheaper and faster. Most companies will either charge a transfer fee and convert the currency using the mid-market rate or skip the fees and charge a small margin to the FX conversion rate.
When sending money through a money transfer service, the recipient can receive the amount in one day or less. Although some services have slower transfer speeds, they are usually faster than a bank.
Plus a money transfer company can also give the recipient extra delivery options rather than bank account only.
Is it safe to use a money transfer company?
All financial institutions receiving or sending money from Australia are licensed and registered. If you’re not sure which service you can trust, know that all services listed on Finty are operated by experienced teams. They are licensed and regulated in multiple countries, have thousands of customers worldwide, and process billions of dollars each year.
Best AUD/NZD exchange rates
When searching for the best AUD/NZD exchange rates, the most important thing to focus on is the margin charged.
Banks can charge as much as 5% margins on top of the fixed fee. Money transfer services can also charge margins, but they generally don’t exceed 0.6%.
Some platforms don’t charge margins at all, exchanging the currency at mid-market rates (the real interbank rates).
When choosing a service, you should also consider features such as FX rate lock-in or guarantee, which means that you can lock in the offered rate for 24 hours.
What are the fees?
Sending money overseas through a bank can cost up to A$35 per transfer. Most money transfer services also charge a fee, but these fees rarely exceed A$5 per transaction.
There are some exceptions, but those services that charge higher fees (such as Wise) normally offer their customers the mid-market rate when transferring foreign currency.
Minimum and maximum transfer amounts
Another crucial thing to check before choosing a service is the minimum and maximum transfer amounts.
Banks have no minimum limits, but they limit the maximum amount you can send. Limits vary from bank to bank but rarely exceed A$10,000 when transferring from your personal account. Comparatively, money transfer services allow you to send A$50,000 or more per transaction.
Unlike banks, however, some money transfer companies impose a minimum transfer amount. These limits can vary from a few hundred to A$2,000 or more.
Alternative ways to send money to New Zealand
Banks and money transfer services are excellent choices when the recipient needs fast access to money within one business day.
The main disadvantage is that both you and your recipient in New Zealand need to be set up on a crypto platform which is less commonplace. Non stablecoin crypto currencies such as Bitcoin or Ethereum can be volatile, and the recipient could lose money when converting them to NZD.
What details do I need to send money overseas to NZ?
Sending money overseas cannot be done anonymously. If you transfer funds through a bank, you may not have to provide any documents for transactions ordered from an internet banking account. For in-branch transfers, you may have to show the clerk proof of identity, such as a passport.
You must also know the recipient’s details, such as:
- Account name
- Account number and SWIFT code (if required)
- Recipient’s home address
How can I fund my money transfer?
Depending on the service you use, you can fund your money transfer through a bank transfer, debit or credit card, BPAY, etc.
How fast can my money transfer be sent to New Zealand?
It can take anywhere from a few seconds to five business days for the recipient to receive the money.
What are the money collection options?
The most common money transfer options – either through a bank or a money sending service – deliver the funds into the recipient’s bank account. Some providers allow you to send the money to an e-wallet or offer cash pick-up locations and cash delivery.
Are there any tax considerations?
The recipient may have to pay tax on transfers that are considered income. But expats who have just moved to New Zealand can benefit from four-year tax relief on their foreign income.
Income includes money from rent or conducting business overseas, but not monetary gifts.
New Zealand abolished gift duties in 2011, so you can send or receive any gift amount without worrying about tax.
Freelancers or employees receiving money from overseas employment must pay income tax. Businesses must also pay tax on money transfers received from overseas.