Update April 2014
Income tax and GST rates remain unchanged.
Minimum Wage - From 01 April 2014 the minimum wage will become $14.25 per hour. the starting out Wgae increases to $11.40 per hour.
ACC Levy Rate- Dros from 1.70% to 1.45% from 01 April 2014
A reminder for all standard provisional tax payers, the first instalment of 2015 provisional tax is due to be paid by 28 August 2014. If you have a payment due but will have trouble making the payment please get in touch to discuss.
Kiwisaver Contribution Increase
Increase Compulsory Employer contributions have increased from 2% to 3% from 01 April 2013. The 2% employee contribution rate will also increase to 3%, employees contributing at the 4% or 8% rate will not be affected by the rate increase.
Student Loan Payments Increase
The Student Loan repayment rate will increase from 10% to 12% effective 01 April 2013 for all New Zealand based borrowers earning over the repayment threshold of $19084.00. NZ IRD is also getting savvier in communicating with customs and overseas tax departments enabling them to track down overseas borrowers who are not complying currently it is reading no complying. They now also have the power to demand repayment of the entire student loan balance if a borrower is being consistently non-compliant.
Tax Credit Changes for Children
As announced in the 2012 budget the tax credit for children was removed from 01 April 2012, this means children subject to PAYE tax will have full PAYE deducted from their wages. The new rules do not apply to children who earn less than $2340.00 and are not taxed at source, the $2340.00 will remain untaxed.
The childcare tax credit has been removed from 1 April 2012. So the last time you can claim for childcare will be for payments made in the 2012 tax year (1 April 2011 to 31 March 2012).
Year End Review of bad debts and stock
Please ensure you review your stock value and bad debts as at 31 March 2013. It does not make sense to pay tax on money you will never collect or stock you will never sell. 31 March is your chance to write off bad debts and write down stock. Stock valued at less than $10,000.00 can be excluded completely; this can help reduce your taxation liability. Stock should be valued at cost, replacement price, discounted selling price or market selling value.