tax changesWith over 100 tax changes that came into effect in April, there’s sure to be something that will have an impact on you or your business. Take a look at our summary of the 13 most influential areas of change.

  • Matariki is now a public holiday for tax purposes.
  • GST is being tweaked for: groups; importers and exporters; crypto assets; and record keeping.
  • Late tax penalties are able to be waived; use of money interest relief can now be extended for anyone who can’t pay tax on time due to adverse effects from Covid-19 restrictions.
  • Provisional tax can be paid later for safe harbour customers.
  • Some rates are changing, including the minimum thresholds for ACC earners’ levies and student loan repayments.
  • Trusts now have additional reporting requirements in place – these have changed quite significantly, so do get in touch if you have a trust.
  • Sales suppression software that alters EFTPOS sales data is prohibited.
  • Working for Families tax credits are increasing; the minimum family tax credit has increased by over $1,750 per year.
  • Child support rules have been tweaked to make it less complex and encourage compliance.
  • The bright-line test 10-year extension is now in place, with a 5-year rule for the initial owners of new builds.
  • Rental interest deductibility phase-outs continue, with some exemptions.
  • KiwiSaver members who make employee contributions have more ways to request changes to their contribution rates. There is a new process for employers to return contributions once an employee is no longer a KiwiSaver member.
  • Fringe benefit tax has a new calculation method and unclassified benefits have been clarified.

For more information, you can visit the Inland Revenue’s dedicated page covering all these changes and more.

Take the confusion out of it by getting in touch with us. We can tell you which changes will affect you or your business and what impact they’ll have – we are here to help and we’d love to hear from you.