Opening a bank account in New Zealand on a working holiday

Banking in New Zealand is one of the first practical hurdles of a working holiday — and it's a circular one. You need a bank account to get an IRD number, and you need an IRD number to avoid being taxed at 45%. Getting both sorted in your first week saves you real money.

Why the IRD number is non-negotiable

If you start work without giving your employer an IRD number and a completed tax code declaration (IR330 form), New Zealand law requires them to withhold tax at the non-declaration rate — 45% — on everything you earn. This has been the rate since April 2020 and it applies regardless of how little you earn.

With an IRD number and the correct tax code, most working holiday makers are taxed at rates between 10.5% and 33% depending on their income band. Providing your IRD number to every employer is therefore one of the highest-value actions you can take on arrival.

Opening a bank account without a fixed address

The biggest frustration for newly arrived WHV holders is the address requirement. Banks need a New Zealand address to open an account, but you may be living in a hostel or haven't signed a lease yet.

• ANZ and BNZ let you apply online from overseas up to 90 days before arrival — you then activate in branch when you land
• Many banks accept a hostel address as a temporary address if you explain you hold a working holiday visa
• ASB is the strictest — it typically requires a residential address, not a hostel, so leave it as a backup
• Bring your passport, working holiday visa confirmation, and your overseas home address (bank statement or utility bill from the last 12 months works)
• Kiwibank and Westpac also allow WHV holders to open accounts; check their websites for current pre-arrival options

Getting your IRD number

Once your bank account is open, apply for your IRD number online through the Inland Revenue website. The application asks for your passport details, your Immigration New Zealand application number (from your visa), and your most recent overseas tax number if you have one.

If you apply online, Inland Revenue sends your IRD number by text or email within about 2 days. A postal application can take up to 10 days. Apply online — you want this number before your first shift.

• Go to ird.govt.nz and select 'Apply for an IRD number'
• Choose the 'New arrival' pathway and enter your visa details
• Provide your NZ bank account number (this is why you need the account first)
• Your IRD number arrives by text/email in roughly 2 days
• Hand it to your employer along with a completed IR330 tax code declaration form

Getting paid in NZD — what your employer needs

New Zealand bank accounts use a 15-digit account number in the format: bank–branch–account–suffix (for example, 12-3456-7890123-00). This full number is what you give your employer for payroll — there is no separate BSB-style code like in Australia.

Most banks provide this number in their app immediately after account activation. Screenshot it and save it somewhere accessible — you'll be asked for it on your first day of work.

How Tern helps

Tern guides you through the bank account and IRD number steps in sequence the moment you land, stores your NZ account details securely, and reminds you to submit your IRD number to each new employer. If your employer ever withholds at the 45% non-declaration rate, Tern flags it immediately so you can correct it before the over-withholding compounds.