Do Your ASX Shares Avoid NZ FIF Tax?
Australian-resident ASX-listed companies are exempt from the New Zealand Foreign Investment Fund regime under section EX 31 ITA, but only if all four conditions hold (ASX-listed, Australian tax-resident, maintains a franking account, and is not stapled stock). Run the checker below before excluding a holding from your FIF calculation.
1.Is the share on the official list of ASX Limited?
Must be the ASX official list (not Cboe Australia, NSX, or other Australian exchanges). ETFs and managed funds listed on ASX are listed but fail later tests.
2.Is the company Australian tax-resident, and not treated as resident in another country under a tax treaty?
Most genuine Australian companies (CBA, BHP, CSL, Wesfarmers) qualify. ASX-listed but Irish- or US-resident dual-listed companies — e.g. James Hardie Industries plc (JHX), Irish-resident since 2010 — do NOT qualify under EX 31 test 2.
3.Does the company maintain a franking account (or is required to)?
Companies that pay franked dividends maintain a franking account by default. Mining juniors and pre-revenue listings sometimes do not. Check the company's most recent annual report for a 'franking credit balance' disclosure.
4.Is the security NOT stapled stock?
Stapled securities — multiple legal entities trading as a single unit on the ASX — are explicitly excluded by EX 31 test 4. This rules out Transurban Group (TCL), Scentre Group (SCG), Goodman Group (GMG), and similar A-REIT-plus-corporate stapled structures, even though they are otherwise Australian-resident with franking accounts. Answer 'Yes' if it's a single ordinary share, 'No' if stapled.
The 4 exemption tests, in detail
Test 1 — Listed on the official list of ASX Limited. The share must be on the ASX official list. Other Australian exchanges (Cboe Australia, NSX) do not qualify.
Test 2 — Australian tax residency. The company must be Australian tax-resident and not treated as resident in another country under a double-tax agreement. Some ASX-listed companies are incorporated overseas (e.g., James Hardie Industries plc relocated to Ireland in 2010) and are treated as Irish or other foreign tax residents under the relevant DTA — those holdings remain full FIF interests even though they trade on the ASX.
Test 3 — Franking account. The company must maintain a franking account. Most operating Australian companies that pay dividends do so by default; pre-revenue mining juniors and certain trust-structured listings may not. Check the most recent annual report for a "franking credit balance" disclosure.
Test 4 — Not stapled stock. Stapled securities — where two or more separate securities are quoted as one unit on the ASX — are explicitly excluded. This rules out Transurban Group (TCL), Scentre Group (SCG), Goodman Group (GMG), and similar A-REIT-plus-corporate stapled structures even though they are otherwise Australian-resident with franking accounts. The IRD applies this exclusion strictly per the EX 31 fourth criterion.
What the exemption changes for you
| Treatment | Exempt ASX share | Non-exempt FIF interest |
|---|---|---|
| Counts toward $50k de minimis | No | Yes (cost basis) |
| Annual deemed income | None — only actual dividends | FDR 5% of opening or CV (whichever lower) |
| Capital gains taxed? | Only if you trade on revenue account | Embedded in CV calculation |
| Franking credits usable in NZ? | No (Australian-resident benefit) | No |
| AU withholding tax credit | Yes — claim under DTA | N/A under FDR; relevant if dividends material under CV |
| IR3 reporting | Overseas dividend income box only | FIF schedule (IR4F if complex) |
Per-stock FIF lookup directory
Quick reference for 21 ASX-exempt stocks and 29 foreign / stapled / ETF holdings that ARE FIF interests. Click through for the full per-stock breakdown.
✓ ASX-exempt (does NOT count toward $50k FIF de minimis)
⚠ Foreign FIF (counts toward $50k; FDR/CV applies above threshold)
- TCL
- SCG
- GMG
- JHX
- TSLA
- AAPL
- NVDA
- MSFT
- GOOGL
- AMZN
- META
- BRK-B
- JPM
- V
- WMT
- KO
- MCD
- JNJ
- DIS
- NFLX
- VOO
- VTI
- QQQ
- SPY
- VAS
- IVV.AX
- NDQ
- VTS
- VGS
Includes ASX-listed ETFs (VAS, IVV.AX, NDQ, VTS, VGS) — they're FIF, not exempt, because the EX 31 exemption applies only to operating companies.
Common edge cases
- Dual-listed companies (ASX + LSE/NYSE): Tax residency is what matters, not where shares trade. Rio Tinto plc (UK-resident) is FIF; Rio Tinto Limited (AU-resident) is exempt.
- ASX-listed ETFs (VAS, A200, IVV, NDQ, etc.): Almost always FIF interests, not exempt Australian shares. The fund vehicle is what's listed, and the underlying holdings determine FIF status.
- Stapled securities (Transurban TCL, Scentre SCG, Goodman GMG): EX 31 test 4 explicitly excludes stapled stock from the exemption — even when the operating company leg is Australian-resident with a franking account. These are full FIF interests.
- ASX-listed but Irish/foreign-resident (James Hardie JHX): JHX is incorporated in Ireland and is Irish tax-resident under the AU-IE DTA. It fails EX 31 test 2 and is a FIF interest, not an exempt Australian share.
- New ASX IPOs: Need at least one full annual cycle before they appear on IRD's list. Treat as FIF in the first year.
- Holding via a managed fund or wrap platform: If you hold ASX shares directly through Sharesies/Hatch/Tiger, the exemption flows to you. If you hold via an Australian PIE or Australian managed fund, the fund itself is the FIF interest.
Frequently asked questions
Do all ASX-listed shares avoid NZ FIF tax?
No. Four conditions must all hold (per IR461 April 2026): listed on the official list of ASX Limited, Australian tax-resident (not treated as resident in another country under a DTA), maintains a franking account, and is NOT stapled stock. ASX-listed companies that are US/UK/Irish tax-resident, foreign-domiciled ETFs, and stapled securities (TCL, SCG, GMG) do NOT qualify and are full FIF interests.
Are CBA, BHP, CSL, and Wesfarmers exempt?
Major ASX 200 names that are Australian-resident and frank dividends — CBA, BHP, CSL, Wesfarmers, Woolworths, NAB, ANZ, Westpac, Telstra, Macquarie, Rio Tinto, Coles — have historically appeared on the IRD approved list. Always verify against the current year's IRD list before excluding the holding from your FIF calculation: companies can be added or removed annually.
What about ASX-listed ETFs like VAS, A200, IVV, or NDQ?
ASX-listed ETFs are usually FIF interests, not exempt Australian shares. Index ETFs (Vanguard, iShares, BetaShares) hold underlying foreign assets, and the ETF unit itself is treated as a FIF interest under NZ rules. The Australian-share exemption applies to Australian-resident operating companies — not to fund vehicles. Use the FIF Tax Calculator for ETF holdings.
Do I still need the $50,000 de minimis if my ASX shares are exempt?
The de minimis threshold of NZ$50,000 (cost basis) only counts FIF interests. Exempt ASX shares are not FIF interests, so they do NOT count toward the threshold. Example: $80,000 cost in exempt CBA + BHP + $30,000 cost in US-listed VOO = total FIF cost basis is just $30,000, under the de minimis. You only pay tax on dividends actually received.
How do I report exempt Australian dividends on IR3?
Australian dividends from FIF-exempt shares are reported as overseas dividend income (Box 17 / equivalent overseas income box on IR3), gross of Australian withholding tax. Australian franking credits are NOT creditable in NZ because the franking system is an Australian-resident shareholder benefit — but Australian withholding tax (typically 15% on unfranked portions for NZ residents under the AU/NZ DTA) IS creditable as a foreign tax credit against your NZ tax liability.
What if I'm not sure whether a share is on the IRD list?
Default to treating the holding as a FIF interest (counts toward $50k de minimis, FDR or CV applies if total cost basis exceeds the threshold). The IRD publishes the annual exemption list under 'Australian share exemption' on its FIF guidance pages — this is the only authoritative source. If a specific ticker is missing from the list, it is not exempt for that year, even if it was exempt the previous year.
Sources
Related Calculators
FIF Tax Calculator
Calculate FDR vs CV across all your non-exempt FIF holdings.
FDR vs CV Comparison
Decide which FIF method to elect each year.
Dividend Tax Calculator
Tax on NZ and overseas dividends including AU withholding tax.
PIE vs Direct Investment
Compare PIE funds (capped 28%) to direct investment at marginal rate.
Last updated April 2026. The IRD-approved Australian share exemption list is published annually — verify the current year's list before excluding any specific ticker from your FIF return. This page is general guidance, not tax advice.