Tax implications on foreign investments?

[jeronz]

I have recently opened an Optionsxpress Australia account which allows me to trade on the US market. I am blown away by the range of products and tools available compared to directbroking and ASB securities (not to mention the lower commission fees).

I am a passive investor and am slowly building up my portfolio and purchasing several low-fee ETFs (from vanguard and others) that track different markets. My final portfolio will include S&P500, US mid cap, US small cap value, Canada large cap, Europe large cap, International small cap value, emerging markets, US REIT, and international bonds. I also hold smartshares ETFs to track the Australia and New Zealand large cap (held directly with smartshares). My total portfolio value at the moment is small at around 15,000 NZD.

I plan on investing quarterly to semi-annually and re-balancing annually to predefined weightings.

What are the tax implications for a New Zealander for capital gains and income on foreign stocks, bonds and REITs. I cannot seem to find any information on this. I signed a resident withholding tax form when I opened my optionsxpress account.

I am in the top tax bracket in New Zealand and am 26 years old. My investment period will be 10 years plus. (Not necessarily for retirement as I already a matched kiwisaver fund and a matched superannuation fund.)