If you subdivide and then sell off part of your existing section, you only need to pay tax in certain circumstances. Generally, you do not need to pay tax if all of the following apply- You do not have a pattern of buying and selling properties. You did not buy the undivided section with an...Read More

The following changes have taken effect from 1 July 2024- -FamilyBoost has been passed into law. A decision support tool and authenticated calculator are available. -A government contribution of 3% to KiwiSaver when a paid parental leave recipient contributes to their KiwiSaver. -The brightline test now applies to properties sold within 2 years, and a...Read More

New Personal Income Tax Thresholds. The Budget’s main feature is the $3.7 billion a year tax package, which will kick in from 31 July 2024. https://budget.govt.nz/Read More

Kilometre rates for 2024 Income year. The table below outlines the rates you can claim for business motors vehicle expenditure for the 2024 income year. The Tier 1 rate is a combination of your vehicle’s fixed and running costs for the business portion of the first 14,000 kilometres travelled by the vehicle in a year....Read More

My business is making a loss. What does this mean for tax? Your business is considered making a loss when your business’s expenses are greater than its income. In this case your business will be exempt from paying income tax. If you find your business in this position, you may be able to carry the...Read More

Does leaving New Zealand change my tax responsibilities? As a New Zealand tax resident if you are planning on leaving the country there are a few things you will need to work out prior to your departure. You will need to work out whether your tax residency status will change, if double tax agreements will...Read More

Tax exemptions for victims of North Island flooding. A Supplementary Order Paper was added to the latest tax Bill on Tuesday 14 March 2023. These provisions have been made to provide tax relief for certain payments and benefits made by employers to employees affected by the North Island flooding events of 2023. This tax relief...Read More

Update on prohibited cash transactions. From 11 May 2023, a prohibition under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act), will prohibit cash transactions for specified high value goods. This means that any person who is in trade/ business that buys or sells any of the below high value goods cannot...Read More

Rules for tax invoices are changing on 1 April 2023. The new rules surrounding tax invoices have recently been released by Inland Revenue. These rules come into action on the 1st of April 2023. The new term ‘taxable supply information’  is a more general requirement, and will be replacing the current requirements of  ‘tax invoices’. ...Read More

Tax changes to encourage build-to-rent long term rentals. The Government is proposing a tax change to encourage more build-to-rent long term dwellings in order to assist with the New Zealand housing crisis. This tax change will exempt landlords from the interest limitations rules and applies to new and existing build-to-rent developments. This exemption will apply...Read More

Credit and debit interest rate change on 29 August. IRD regularly reviews rates to ensure they align with current market interest rates. As of August the 29th the interest rate on overpaid (credit interest) and underpaid (debit interest) tax will change. The new rates are: debit interest 10.91% (up from 10.39%) credit interest 4.67% (up...Read More

Am I a provisional taxpayer? And what happens when the due date falls on a weekend or public holiday? You enter into the provisional tax regime when your residual income tax is more than $5000. In this regime you normally pay 2 or 3 installments throughout the year, depending if you are GST registered.  If...Read More

As a contractor/ self employed do I need an accountant? It’s understandable why so many people choose self employment and contracting work, with the greater independence, higher earnings, and control over lifestyle it offers. It is clear to see why so many choose this route. With the added freedom that self employment provides, it also...Read More

As an employee, can I claim expenses from working at home? Due to COVID-19 working from home has become very common for employees. It raises the question as to whether all the expenses resulting from this can be claimed? (Such as power, internet and printing). In many instances employees are expected to absorb these additional...Read More

The newly implemented Cost of Living Payment What’s it all about? In the 2022 Budget the government announced the ‘Cost of Living Payment’ scheme in response to the increased cost of living. For those eligible, individuals will receive up to $350, with payments split into 3 monthly payments of $116.67.  To be eligible individuals must:...Read More

It’s 2022 and the ever-changing taxation landscape for your rental property has made it more complicated than ever to manage your own returns.Read More

Prescribed interest rates for fringe benefit tax (FBT). The prescribed interest rates for fringe benefit tax (FBT) increased to 8.41% on 1 October 2023. These are the prescribed interest rates that are used to determine the fringe benefit value of low-interest loans provided to employees. QuarterRate (%)From 1 October 20238.411 April 2023 to 30 September...Read More

Covid-19 payment review underway. The IRD are now reviewing the accounts of a sample of customers who received one or more of: -Resurgence Support Payment -Covid-19 Support payment -Small business Cashflow Scheme Loan They are reviewing it to ensure customers met the relevant eligibility criteria and have used payments in line with the terms and...Read More

Keeping business records for seven years. Records make it easier to: calculate your income and expensescalculate your GST if you’re GST registeredmeet your employer obligations if you have staffconfirm your accounts. Records must be in English or Māori, unless the IRD have given you written authority to keep them in another language. You need to...Read More

Kilometre rates for 2021- 2022 Income year. The table below outlines the rates you can claim for business motors vehicle expenditure for the 2021-2022 income year. The Tier 1 rate is a combination of your vehicle’s fixed and running costs for the business portion of the first 14,000 kilometres travelled by the vehicle in a...Read More