The $50,000 FIF Threshold Explained

Threshold status

Is the $100k threshold in effect yet?

No. The threshold today is still $50,000.

The $100,000 threshold is a Budget 2026 proposal. Until legislation passes, crossing $50,000 in total cost still brings you into the FIF rules.
The change is expected in a taxation bill later in 2026, with commentary pointing to around September. If it passes, it is expected to apply retrospectively from 1 April 2026.
It does not pass automatically with the Budget. Threshold changes are substantive tax law, so they need their own bill through parliament, including select committee.
2026 is an election year. Passage is likely but not guaranteed, and the final detail could change before it is settled.

Last reviewed June 2026. We update this section as the legislation moves.

See everything proposed in Budget 2026

One of the first things to work out with FIF is whether you're even above the threshold. If the total cost of your overseas investments stayed under NZD $50,000 throughout the whole tax year, FIF rules don't apply. You just declare any dividends as normal income and move on.

Cost price, not market value

The $50,000 threshold is based on what you paid for your investments (the cost price), not what they're currently worth.

Say you bought $45,000 worth of US shares over the last couple of years, and they've since grown to $70,000. The threshold still looks at the $45,000 you paid, so you're under it and FIF doesn't apply.

Long-term investors who bought in early tend to benefit here. Your cost base can sit well below what the portfolio is actually worth now, which keeps you under the $50k line for longer than you might expect.

“At any point during the year”

The threshold is checked against whether your cost base exceeded $50,000 at any point during the tax year, not just at the end. So if you bought $55,000 of US shares in November and then sold $10,000 worth in February, you'd still be subject to FIF for that whole year, because you crossed the threshold in November.

All your foreign investments combined

The threshold applies to all your overseas investments combined, not each one separately. So if you have $30,000 in US shares, $15,000 in a global ETF, and $10,000 in Australian shares (if they don't qualify for the Australian exemption), that's $55,000 combined, which puts you over the threshold.

What happens when you cross $50k?

Once you're over the $50,000 threshold, FIF rules apply for the entire tax year (not just the period after you crossed it). You'll need to calculate your FIF income under either the FDR or CV method and include it in your tax return.

This is why keeping an eye on your cost basis as you invest is useful. Crossing the threshold triggers a meaningful change in how you're taxed.

Currency conversions

Everything needs to be in NZD for the threshold check. If you hold US dollar investments, you'll need to convert using the exchange rate at the time of purchase (or IRD's approved rate).

Tip:If you're getting close to $50k in overseas investments, consider consulting a tax adviser before you cross the threshold, as a bit of planning can save hassle at tax time.