GRA Blogs

Articles by Matthew Gilligan

Breaking News - Tax Rate Change

AUTHOR: Matthew Gilligan

POSTED: 10 September 2020

Yesterday (9 September 2020) Labour announced a new tax rate of 39% on personal income exceeding $180,000 per annum. Key points that we know so far:

• Applies to individuals only, i.e. an individual on a salary of, say, $200,000 will pay an additional $1,200 per annum

• It does not apply to combined household income, i.e. a couple each earning $100,000 for a total of $200,000 per annum will not pay any more tax

• All other rates and brackets remain the same

• Any new taxes or further income tax increases ruled out for their next term (if elected).

• Applicable from next year

• No changes proposed to trust (33%) or company (28%) tax rates

The last point is significant, emphasising the importance of getting the right business / investment structure in place. There will be tax planning opportunities arising out of the differential between the trust and company rates and the new highest rate. It would not surprise me if Labour revisits their position on the trust tax rate at least, but that is how things stand at present.

If you would like a review of your tax position and structure, please phone us on +64 9 522 7955.

Request a Meeting

Matthew Gilligan
Director

09 522-7955

mg@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

We moved our business accounting to GRA twelve months ago and have never looked back. Matthew Gilligan and his team have consistently provided us with honest straight forward advice and have proved themselves to be honorable, trustworthy and efficient in all matters to date. The point of difference for us is that GRA do not charge their clients for every question asked (like most other accountants) which allows for better communication and understanding of how to run a successful company. GRA have impeccable time management systems in place and their customer service is outstanding. I recommend them to any other business that wants good solid advice with the aim of business success, asset protection and opportunities for sound investments. - A Ellis – EC Flooring Contractors Limited

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.