Transfer Money from New Zealand to Australia

By 
Russell Gous
Last Edited Oct 10, 2023

If you need to transfer money from New Zealand to Australia, you’re likely searching for the best way to accomplish this.

The first crucial thing to be aware of is that you DON’T HAVE TO use your bank to facilitate an international bank transfer from New Zealand to Australia..

You could use it of course…

BUT —

Be aware that Kiwi banks charge unnecessarily high fees for a slow and limited service.

As for the Australian banks that also operate in New Zealand, it’s the same story.

Transferring money from New Zealand to Australia can only be done for cheap if you use a dedicated international money transfer service.,

We’ll run through the options that are available to you in New Zealand.

 

Currency Exchange Rates

NZD to AUD

Current Rate: 0.9439 AUD

Estimated Bank Rate (2.5% markup): 0.9203 AUD

Provider Rate (0.6%): 0.9382 AUD

Indicative rates only. 2.5% was applied as the bank margin and 0.6% as the provider rates, but we don’t guarantee either.

AUD to NZD

Current Rate: 1.0594 NZD

Estimated Bank Rate (2.5% markup): 1.0329 NZD

Provider Rate (0.6%): 1.0531 NZD

Indicative rates only. 2.5% was applied as the bank margin and 0.6% as the provider rates, but we don’t guarantee either.

Transfer Money From Australia to New Zealand

 

NZD / AUD Corridor is One of the Most Popular Transfer Routes in NZ

Australia and New Zealand share a bond rooted in history.

This close connection manifests in various ways, not least in the popularity of money transfers between the two nations.

A key factor is the Trans-Tasman Travel Arrangements (TTTA) of 1973, allowing Australians and New Zealanders to live and work in either country without restrictions.

Around 70,000 Australians live in New Zealand and may have a requirement to send money home.

Businesses account for a significant portion of the flows from New Zealand to Australia too.

According to the United Nations COMTRADE database on international trade, Australia exports to New Zealand totalled US$8.83 Billion during 2022.

The most common reasons to transfer money today from New Zealand to Australia are as follows:

  1. Living Expenses
  2. Business Invoices
  3. Sending to Family
  4. Bill Payments
  5. Emigration

How to Send Money Between NZ and Australia [4 Easy Steps]

Follow these four steps to facilitate a transfer through a non-bank provider who will understand your needs and offer better NZDAUD rates than your bank.

Choosing the right service is key when it comes to transferring money from New Zealand to Australia.

The market offers many providers, from popular ones like Western Union, to others you may not be as familiar with.

However, it’s not just about picking a familiar name. Each service has its own strengths and weaknesses.

To help you out, we have listed the various options:

⭐ Best Way to Send Money From NZ to Australia ⭐

Based on Security, Speed and Cost; companies operating in New Zealand

#1
UK Australia New Zealand EU #1 TorFX: Best for Large Transfers to and from New Zealand
Australia Offices:
25 Elkhorn Ave, Surfers Paradise QLD 4217
98.4% Editorial rating
3,000 Client Reviews
Minimum transfer:
$100
Why Them?
  • Offices in UK, EU and Australia - Deals with Many NZ Customers with Glowing Reviews (4.9/5 TrustPilot)
  • Not Charging Fixed Fees Per Transfer ($0 Policy Online and by Telephone)
  • Offering Bespoke Guidance for Payments and Hedging, When You Use TorFX Australia - You Deal With One Point of Contact
+Read more
1
Torfx Money Transfer
#1 TorFX: Best for Large Transfers to and from New Zealand
98.4%
Editorial rating
#2
New Zealand Australia UK EU USA Xe: Biggest Name in Currency Since 1993
Local NZ Offices:
Level 2, 329 Durham Street North Christchurch, New Zealand
91.3% Editorial rating
62,000 Client Reviews
Minimum transfer:
NZ$100
Why Them?
  • Excellent Sign Up Process
  • Global Company with Multiple Offices in APAC, and Several in NZ
  • Combination of Work-Of-Art Online System with Brokerage for Large Transfers
+Read more
2
Xe
Xe: Biggest Name in Currency Since 1993
91.3%
Editorial rating
#4
New Zealand Australia UK EU USA #2 OFX: ASX Traded Awards Winning Platform, HQ in Sydney, NZ Offices
Local NZ Offices:
Level 26, PWC Tower. 188 Quay St. Auckland
90.4% Editorial rating
1,500 Client Reviews
Minimum transfer:
NZ$100
Why Them?
  • Australian Company with Offices in NZ (Previously Named NZForex in NZ)
  • Traded Publicly, 20bn Turnover per Year
  • Ultra Professional in What They Do - 20 Years of Experience
+Read more
4
OFX
#2 OFX: ASX Traded Awards Winning Platform, HQ in Sydney, NZ Offices
90.4%
Editorial rating
#4
Australia New Zealand #3 SendPayments - Best for Aussies in NZ
Local Australia Offices:
10 Rawlins St, Southport QLD 4215
88.4% Editorial rating
122 Client Reviews
Minimum transfer:
AU$100
Why Them?
  • Best Website - Friendly and Transparent
  • Easy to Sign Up and Trade
  • Competitive Exchange Rates for Both Small and Large Transfers
+Read more
4
Send Payments
#3 SendPayments - Best for Aussies in NZ
88.4%
Editorial rating
#5
New Zealand Australia UK EU USA #4 Wise: Great App & MultiCurrency Account
Local Australia Offices:
36-38 Gipps St, Collingwood, VIC 3066
86.8% Editorial rating
32,000 Client Reviews
Minimum transfer:
AU$1
Why Them?
  • Most Recognizable Brand in Money Transfers Today
  • Offering a Foreign Currency Bank Account to Receive or Hold Money.
  • Boast 1,000+ Employees and $4bn in Monthly Turnover
+Read more
5
Wise / Transferwise
#4 Wise: Great App & MultiCurrency Account
86.8%
Editorial rating

If you need to make a decision fast, we can recommend any of the four providers mentioned above.

These providers are cheaper than Australian banks and in the case of TorFX, OFX and Send, they also have a team of foreign exchange experts who will guide you through the process.

Plus, you’ll be able to access hedging tools like forward contracts. Only big corporations can access these through banks.

Transferring Money From New Zealand to Australia with banks, brokers, online money transfers, remittances providers – pros and cons:

Kiwi BanksCurrency BrokersOnline Money Transfer ServicesRemittance Services
Example Service Providers
  • ANZ Bank
  • Bank of New Zealand
  • KiwiBank
  • Westpac New Zealand
  • TorFX
  • OFX
  • Revolut
  • Wise (formerly TransferWise)
  • Remitly
  • Western Union
Benefits
  • Conduct transactions through your existing bank, eliminating the need for additional registrations
  • High-level security measures
  • Accommodates payments of various sizes
  • Availability of physical branches for in-person transactions (although they may involve higher costs)
  • Access to multiple hedging tools to manage currency market fluctuations
  • Support from dedicated currency specialists
  • Choice between online and telephone trading
  • No payment processing fees
  • Fast and user-friendly online platforms for quick payment processing
  • Narrower foreign exchange (FX) spreads compared to banks, with transparent rates
  • Lower payment processing fees
  • Option for cash collection depending on the destination and service provider
  • Flexibility to complete transactions online or at local branches
Drawbacks
  • Currency hedging tools may not be accessible to private clients and small businesses
  • High transfer fees
  • Wide FX spreads
  • Lack of consultation with currency specialists
  • FX spreads generally narrower than banks – competitive foreign exchange rates for large international transfers
  • Limited availability of currency brokers in Australia compared to New Zealand, resulting in fewer options
  • No branch network
  • No hedging tools available; acceptance of FX rate at the time of payment
  • Lack of guidance from currency specialists
  • No branch network
  • Wide FX spreads (though potentially narrower than bank FX spreads)
  • No hedging tools available; acceptance of FX rate at the time of payment

In terms of simplicity, it’s probably easiest to use your existing bank, but the problem is the cost of sending money from New Zealand to Australia.

New Zealand bank fees are as follows:

BankOnline Fees Fees in Branch
ANZ New Zealand$9$28
Bank of New Zealand$5$25

Additionally and more importantly, if you are sending money from New Zealand to Australia and require exchanging New Zealand Dollar to Australian Dollar, it’s the amount of money you lose to the exchange rate markup.

An NZDAUD transfer on 28 Sep 2023 with ANZ New Zealand would have seen you charged an FX spread of 1.57%.

An NZDAUD transfer on 28 Sep 2023 with the Bank of New Zealand would have seen you charged an FX spread of 1.95%.

These are better than the spreads charged by Australian banks, but they’re still significantly more expensive than specialist money transfer companies.

Hence, to make this cost effective it is better to use a non-bank provider for payments.

Step 2: Register With Your Service of Choice

When you register with a new non-bank money transfer method, you must undergo a ‘Know Your Customer’ identity check to comply with anti-money laundering rules.

This one-time process, typically completed in a few hours, involves verifying KYC documents.

Notoriously slow in banks, fintechs and money transfer organisations streamline this procedure by using third party software and completing it online in 99% of cases.

Step 3: Format the Details of Your Wire Transfer From NZ to Australia

Once you’ve registered with your service provider, you can arrange your transfer. You’ll do this online, or, if you’ve registered with a currency broker, you can do it with your account manager over the phone.

Inputting accurate recipient details is crucial to prevent delays or misdirected funds.

Australian bank accounts have a six digit BSB code, which represents the branch of the account you’re paying (more on this below), and an account number.

If you’re required to input a SWIFT code, you see our guide to Australian SWIFT codes.

Enter either the AUD amount you intend to receive or the NZD amount you aim to convert.

When you confirm the deal, you make a legal obligation to convert NZD into AUD at the exchange rate you agreed to.

BSB Format to Transfer Money From NZ to Australia

The Australian BSB (Bank State Branch) code consists of six digits, with the first two digits representing the bank itself and the next four digits representing the specific branch. Here’s a simple breakdown:

SectionDescriptionExample
Bank CodeIdentifies the specific bank12
Branch CodeIdentifies the specific branch3456
BankExample Australian BSB Number
ANZ01-2345
Commonwealth Bank06-7890
Westpac03-1234
National Australia Bank08-5678

Step 4: Settle Your Deal and Wait for Funds to Hit the Receiving Account

Once you’ve organised your money transfer from New Zealand to Australia, you’ll need to fund the deal in NZD.

Your payment provider will supply their account number for you to finalise the deal promptly after setting it up.

Follow any reference requirements closely to ensure your funds are swiftly settled by the payment company and converted to AUD.

Firms like OFX and Wise have a local account in New Zealand so you can make setlle the deal locally.

Payment companies suggest that transferring money from New Zealand to Australia can take 1-2 business days.

This is allowing for quite a lot of slack. With efficient timing, you should see your funds reach Australia on the same day you initiate the transfer.

The fact New Zealand is ahead of Australia in time zones works to your advantage.

And that’s it. All in all, pretty simple. A little planning and your funds reach Australia cheaply, securely and fast.

Tax Considerations When Moving Money from NZ to Australia

The Double Tax Agreement (DTA) between Australia and New Zealand prevents double taxation on the same income.

If you’re an Australian resident earning in New Zealand, you may pay tax there, but the DTA allows you to claim a credit in Australia for that tax.

The DTA focuses on income tax, not transfer tax. When transferring money, you’re generally not taxed on the transfer itself.

However, tax may apply if the transferred funds are from a property sale or an inheritance.

If you’re transferring income earned in New Zealand to Australia, declare that income on your Australian tax return. You may be eligible for a foreign income tax offset for any New Zealand tax paid on that income.

Remember, both countries require reporting of large transfers to prevent money laundering. It’s not a tax per se but yet another legal requirement.