Tax Implications for Aussie Investors in NZ

gecco,
If the property is positively geared you will be taxed in NZ then have to include the net result in your Aust tax return as foreign income with a tax credit for tax already paid in NZ. If the tax already paid in NZ exceeds the tax in Aust you cannot us it to offset tax on Aust income but you can carry it forward for 5 years to offset against other foreign income of the same class.
If the property is negatively geared you can claim a deduction in your Aust tax return for the interest paid on the money borrowed to buy the property or claim the net loss on the house whichever is the lesser amount.

[email protected]