Look Across the Tasman: Why Australian Property Buyers Should Be Looking at New Zealand

Australians have long looked to New Zealand for holidays.

But what if your next trip across the Tasman came with a set of keys?

For Australian investors looking beyond their home market, Kiwi expats wanting to maintain a foothold back home, or lifestyle buyers dreaming of their own base in Queenstown, New Zealand offers something worth a closer look.

And here is the part many Australians may not realise: Australian citizens can buy most New Zealand residential and lifestyle property without applying for consent under New Zealand’s overseas investment rules.

You Don’t Have to Be a Kiwi to Buy Here

New Zealand’s restrictions on overseas buyers are well known. What is less well known is that Australian citizens are treated differently.

Under current New Zealand overseas investment rules, an Australian citizen can buy property categorised as residential or lifestyle without applying for Overseas Investment Office consent. Different rules can apply where land is considered sensitive for another reason, so individual properties should still be checked before purchase.

That makes New Zealand unusually accessible to Australian citizens looking to purchase across the Tasman.

You do not need to be a Kiwi expat planning a return home. You might be an Australian investor looking to diversify geographically, a family wanting a future base in New Zealand, or a buyer looking for a property that combines personal use with income potential. For Australians, New Zealand is not simply a holiday destination. It can also be a property market open to them.

Looking Beyond the Australian Investment Market?

Property investment in Australia comes with its own tax rules, costs and considerations, which vary depending on the investor and the state or territory in which they buy.

New Zealand operates under a different tax system.

From 1 April 2025, New Zealand’s residential property interest limitation rules were fully phased out. This means 100% of interest incurred on borrowing for a residential rental property can be deductible, provided the interest is not private in nature and the usual deductibility requirements are met.

New Zealand’s bright-line test is also currently two years for residential property sold on or after 1 July 2024. If a property is sold within the applicable bright-line period, profit on the sale may be taxable. Importantly, the bright-line test is not the only rule that can make a property sale taxable.

These settings can make New Zealand worth considering as part of a broader property strategy.

But buying across the Tasman is not a way to step outside the Australian tax system.

Australian tax residents are required to declare income from overseas rental properties in Australia. Foreign tax already paid may be eligible for a foreign income tax offset, helping to provide relief from double taxation. The tax treatment will depend on the buyer’s individual circumstances, residency and ownership structure.

In other words: this is not about avoiding tax. It is about looking at a different property market, operating under a different set of rules, and deciding whether it fits your wider investment strategy.

For Kiwi Expats, It Can Be More Than an Investment

Of course, not every Australian-based buyer is Australian-born. For the thousands of New Zealanders living across the Tasman, buying property back home can serve a very different purpose.

It might be an investment today and a home later. A way to retain a tangible connection to New Zealand. A base for future visits. Or simply a decision to put money into a market and a country they already know.

New Zealand citizens can buy property in New Zealand whether or not they currently live here. For some, the appeal is purely financial. For others, it is much more personal.

Then There’s Queenstown

Some properties do not sit neatly in the “investment” or “holiday home” box.

A dual-key property can offer a different proposition: one purchase with separate living spaces that may create greater flexibility around how the property is used.

For an Australian buyer, that could mean having a base in Queenstown while retaining the potential to generate income from a separate part of the property, or renting the property when it is not being used personally.

That flexibility is part of what makes dual-key property particularly interesting in a destination market.

However, income potential is not automatic. Short-term visitor accommodation in the Queenstown Lakes District is regulated. Paying guests staying for fewer than 90 days fall within the district’s short-term visitor accommodation framework, and residential visitor accommodation must be registered with the Council. The rules depend on the property’s planning zone, and resource consent may be required if the proposed use goes beyond the permitted standards.

For that reason, any property promoted for holiday use and income should be assessed individually based on its zoning, consent position, management structure and intended use.

But where the right property and the right use align, the proposition is compelling: a place you actually want to own, in a destination you actually want to visit, with the potential to work for you when you are not there.

Your Next Property Might Be Across the Tasman

New Zealand is not the right market for every Australian buyer. But it may be far more accessible than many realise.

Australian citizens can buy most residential and lifestyle property without applying for overseas investment consent. New Zealand’s residential property tax settings have changed significantly in recent years. And for buyers looking beyond a conventional investment, destinations such as Queenstown can offer opportunities to combine lifestyle and income potential.

Whether you are an investor looking to diversify, a Kiwi expat wanting to keep one foot at home, or an Australian who would prefer their next holiday to begin at their own front door, it may be time to look a little further east.

Your next property opportunity might not be in Australia at all.

Thinking about buying in New Zealand from Australia? Talk to the SM Property team about current opportunities across New Zealand, including investment properties and dual-key options in Queenstown.

This article provides general information only and does not constitute legal, tax or financial advice. Australian and New Zealand tax obligations depend on individual circumstances, including tax residency and ownership structure. Buyers should obtain independent legal and tax advice in both countries before purchasing.