There are more than 100 tax changes that took effect this financial year, and some of them may be relevant to you.
Here’s a brief summary of what’s happening:
- Matariki is now a public holiday for tax purposes.
- GST is being tweaked for: groups; importers and exporters; cryptoassets; 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 $1750 a 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 and what impact they’ll have.