The New Zealand government has proposed changes to tax legislation to ease the over-taxation of low-earning trusts. These changes, recommended by Parliament’s Finance and Expenditure Committee, amidst the scrutiny of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill. Finance Minister Nicola Willis has expressed her support for these amendments, highlighting the government’s intent to ensure equitable tax treatment for high-income individuals, regardless of how their income is generated— directly or through a trust. However, an unintended consequence o ..read more

  Budget 2023 announced that from 1st April 2024, the trustee tax rate is going to increase from 33% to 39%. This change will affect all those who have family trusts registered in New Zealand. Inland Revenue has since the release of the change released guidance around how it may perceive some taxpayer transactions and structural changes: A company is owned by a trust and changes its dividend paying policy:Inland Revenue is fine with companies adjusting their dividend payouts to owners based on changes in tax rates or the owners' needs, seeing this as legitimate, not tax avoidance. Howev ..read more

The landscape of GST is set to change significantly from 1 April 2024, affecting businesses and individuals involved in ride-sharing, food delivery, and short-term accommodation services. Suppliers operating through these platforms will not need to register for GST themselves if they continue to make under $60,000 per year; instead, the platforms will be responsible for charging, collecting, and remitting GST on the services provided. What You Need to Know: GST on Digital Platforms: Platforms will now be responsible for charging GST on services offered, even for providers earning under the ..read more

  This year, significant tax changes are expected as the new Government implements its policies and progresses some from the previous administration. Key anticipated changes include: 1. Income Tax Threshold Changes: Finance Minister Nicola Willis hinted at personal tax rate changes in the upcoming Budget. The National party proposed adjusting income tax brackets to counteract inflation, effective from July 1. This includes increasing the thresholds for various tax rates, e.g., the 17.5% rate threshold from $14,000 to $15,600. 2. Impact on Related Taxes: Changes in personal tax ra ..read more

Finance Minister Nicola Willis announced 2 tax proposals as part of the Governments mini-budget: The bright-line test for residential property will be returned to a 2-year period from 1 July 2024. Removing this effective capital gains tax means that properties sold after 1 July 2024 will only be subject to the rule if owned for less than 2 years. The depreciation deductions for commercial and industrial buildings will be removed from 1 April 2024. These 2 measures will be included in the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill currently being co ..read more

The Family Tax Credit (FTC) and Best Start Credit (BSTC) amounts are increasing in line with inflation, effective from 1 April 2024. This means more financial support for families with children. Here's what you need to know: The FTC for the eldest child will increase from $7,121 to $7,524. The FTC for subsequent children will increase from $5,802 to $6,130. The BSTC will increase from $3,632 to $3,838. These changes will automatically apply for the 2024-25 tax year and onwards. Here are some additional details: The increases are due to the cumulative Consumer Price Index (CPI) excee ..read more

Back to all Blogs Important Announcement: Pricing Changes for Xero Subscription: We have an important announcement for all our clients who use Xero for their accounting needs. Starting from 13th September 2023, Xero will be implementing revised pricing across all its plans and this update will have an impact on your invoices from us. We want to ensure transparency and provide our clients with all the necessary information regarding this pricing adjustment. New Xero Pricing Details: STARTER PLAN: $33 per month* STANDARD PLAN: $71 per month* PREMIUM PLAN: $94 per month* ULTIMATE PLAN: $105 per m ..read more

  The recent budget announcement for 2023 has introduced significant changes to trust taxation, particularly in relation to the trust rate. As we delve into the details, it is essential for individuals with trusts to assess the impact of these changes and reevaluate whether trust continues to be the right choice for their financial planning. The Trust Rate Increase: Effective from 1st April 2024, the government has announced an increase in the trust rate from 33% to 39% for income earned in the 2024-25 financial year and beyond. This adjustment aligns with the introduction of the 39% top ..read more

  Back to All Blogs If you own a business in parts of the North Island and have been affected by Cyclone Gabrielle or January flooding, you can apply for support to help you recover. Government grants for recovery support: The Government is providing $25 million in recovery support to businesses in seven regions affected by Cyclone Gabrielle and January floods in the North Island. Farmers and growers can apply for separate support from the Ministry for Primary Industries. Support for farmers and growers What the grants are for You can apply for a grant of up to $40,000. The grants are t ..read more

  Cyclone Gabrielle has been declared to be an emergency event for the purposes of Use of Money Interest Remission (UOMI) rules. This declaration allows Inland Revenue to remit interest charges on late payments of tax. The Tax Administration (February Cyclone Event) Order 2023 (SL 2023/10) was notified in the New Zealand Gazette on 20 February 2023 and came into force on that date. The Order declares the February Cyclone Event to be an emergency event for the purpose of s 183ABA of the Tax Administration Act 1994. The February Cyclone Event means all or any of the flooding or other damage ..read more