Can we live on a salary of 55K in Wellington?

[Henriette]

My partner got a job offer in Welllington with a salary of +- 55k per annum.

We have a toddler of 4 years old aswell as a baby on the way.

We are currently in SA and will be moving to NZ in March 2014.

My partner will be getting a company vehicle and cellphone and the company will provide us with accommodation for 3 months.

I just wanted some advise on whether we will be able to live on that type of salary. I am not planning to work untill after the baby is born, which is July 2014 and then obviously i will be at home with the baby for about 4 months.

Would appreciate your advise and comments.

[girlwithanewf]

If the company pays for your accommodation for the first three months that will be a great help. Have you looked on trademe to see what rental properties cost? It is of course possible but you will probably find it a struggle, especially if you have to replace everything when you get there. Hopefully the company can help you with removal costs of bringing things to NZ so you don't have to buy it here. On that salary you will also struggle to travel outside NZ so that it is something to consider if you are thinking of returning to see family/friends in SA etc.

[A.C. Slater]

You will really struggle. $55k is $850/wk after taxes, which means it will be hard to spend less than 50% of your income on rent. A decent rental for a family starts at $400/wk. After food and utilities, you won't have much left!

[melange]

The 3-month accommodation offer will help, but after that, yes, you will likely struggle. Rent in Wellington is not cheap, especially near the CBD

If you take a place in some of the more distant suburbs the rent will be a lot cheaper, but you have to balance that against transportation costs and amenities (and schooling, if this is a long-term plan). You could definitely 'survive', but not comfortably.

[MK33]

Hi there,
I have been seeing this type of questions a lot lately in the forum... 55K livable? 60K livable? 70K livable .. some even posted like 125K livable?
It definitely depends upon your lifestyle.

Also, I was surprised that people participating in the discussion have never mentioned about some of the benefit/ financial assistance given by the govt to help people with low income.

Let me elaborate citing my example

I earn 55K in Auckland. We are a family of three ( me , my wife and my 6 yr old son). We are living in a 2 bedroom apartment (pretty spacious) in Central Auckland and paying 415/ week.
I think that rent is pretty standard in Auckland. My wife doesn't work and my son goes to a primary school.
And to let you know, we are not doing bad.
NZ government supports families with low income.

Let me elaborate-
My weekly income is 1057. Nearly 200 is deducted as tax. Another 27 NZD is deducted as my kiwisaver.
We receive 72 NZD from IRD as Working for family tax credit and in-work tax credit. (http://www.ird.govt.nz/resources/c/3...1401/ir271.pdf)
and 88 NZD from WINZ as accommodation supplement. (http://www.workandincome.govt.nz/ind...upplement.html)

So, we have 990 NZD per week in our hand after all deductions.
That's not bad actually.

If I was earning like 60K, I calculated and we will be getting around 1000 NZD per week.
Similarly 70K, I would have 1040 NZD per week.

A 15K increase gives you an increase of just 50 NZD a week (because of taxes obviously http://www.ird.govt.nz/how-to/taxrat...etaxrates.html ) .
So, the bottom-line is - In NZ, it's not how much you earn, it's how you spend.

Everything changes if two people are working. You will save around 3K-5K, if two people are working to get 75K.

However there are some benefits of getting high salary of course - banks trust you in giving home loans, business loans etc, car loans are easy to get, helps in immigration of your parents if they are willing to come to NZ, also increases your kiwisaver.

I hope this helps.

Cheers
MK

[A.C. Slater]

While the programs are great, and I agree they're understated, I believe only citizens and permanent residents are eligible for them. It wouldn't make much sense for the NZ government to offer financial assistance on day one to everyone who showed up with a working holiday visa. I know if I were an NZ citizen, I'd vote that down!

[farzanakhan123]

Could some one please clarify is it for permanent resident or simply resident class visa holder can apply for this benefit?

[IanW99]

Could some one please clarify is it for permanent resident or simply resident class visa holder can apply for this benefit?

For Working for Families Tax Credits...

You must meet at least one of the following residency requirements:

• you’re a New Zealand resident and have been in New Zealand continuously for at least 12 months at any time. You must be both a tax resident and resident in New Zealand when you apply for your payments, or
• the child(ren) you’re claiming for are both resident(s) and present in New Zealand.

See http://www.ird.govt.nz/wff-tax-credi...s/eligibility/

Ian

[IanW99]

For accomodation supplement...

In order to receive Accommodation Supplement, a client must normally:

• have a residence class visa under the Immigration Act 2009 (which can either be a resident visa or a permanent resident visa) or
• have a residence permit under Immigration Act 1987 or
• be deemed to hold a residence class visa in New Zealand under the Immigration Act 2009 (eg Australian citizens or residents) or
• be a British national who arrived in New Zealand prior to 2 April 1974 or
• be a New Zealand citizen

See http://www.workandincome.govt.nz/man...plement-03.htm

Ian

[farzanakhan123]

@Ian, thanks for ur valuable input!