GRA Blogs

Articles by John Rowe

APRIL IRD UPDATES: Changes Affecting Individual Taxpayers, KiwiSaver and Businesses

AUTHOR: John Rowe

POSTED: 05 May 2009

There are significant changes that the government has introduced that will affect nearly everyone, especially those who are individual taxpayers, part of KiwiSaver, or business owners.

Read below to find out more.

Changes Affecting Individual Taxpayers:

The 33c in the dollar personal tax rate threshold rises from $40,000 to $48,000.
The rate of tax paid in the top personal income bracket, which starts at $70,000, has reduced from 39c in the dollar to 38c.
A new Independent Earner Tax Credit (IETC) will return $10 a week to people earning between $24,000 and $44,000 who do not receive a benefit, Working for Families tax credits, or New Zealand
The IETC will be abated at 13c for every dollar earned over $44,000.

Changes to KiwiSaver:

The minimum level of employee contributions has dropped from 4 percent of gross salaries to 2 percent.
The member fee subsidy of $40 a year has ceased.
The minimum level of employer contributions will stay at 2 percent. The tax-free threshold will also stay at this level.
The employer tax credit will cease.

Changes Affecting Businesses:

Significant changes have been made to provisional tax (explained in a separate blog).
The threshold for qualifying for the GST payments basis has increased to $2 million in annual revenue from $1.3 million.
The GST registration threshold has increased to $60,000 from $40,000.
The GST six-monthly return filing threshold has been raised from $250,000 to $500,000.
Businesses with $10,000 or less of annual business-related legal expenditure can now deduct the amount regardless of whether it related to capital expenditure (for example conveyancing fees).
The PAYE once-a-month filing and payment threshold has be raised to $500,000 in employer PAYE deductions from $100,000.
The Fringe Benefit Tax annual filing threshold has been raised to $500,000 in PAYE deductions from $100,000.
The value of minor fringe benefits that can be provided to employees without attracting FBT has increased to $300 a quarter per employee from $200, and $22,500 a year per employer from $15,000.

Please contact us if you would like help to understand how these changes affect you personally and your business - if applicable.

Request a Meeting

John Rowe
Director
Business Accounting Services

09 522-7955

jr@gra.co.nz

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

Property School gave me increased awareness of opportunities and pitfalls, insight into ways to move forward, confidence in the advice given - and the need to ask advice! I really enjoyed the down to earth approach and open-ness of methodology and many possible approaches brought together in the program. - Sue, November 2018

We can help

Here's how

Investing in residential property?

Put this at the top of your reading list.

If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.

Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.