Tag: Tax System

Accounting Body Calls for Simplicity in New Property Tax Rules

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During its oral submission to the Finance and Expenditure Committee earlier this week, Chartered Accountants Australia and New Zealand (CA ANZ) urged the government to resolve the complexities brought on by the new tax laws related to the bright-line test. The accounting body recently surveyed 361 of its members and…

NZ Interest Rate Hiked to Stem Inflation

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The Reserve Bank of New Zealand (RBNZ) has raised the official cash rate (OCR) by 25 basis points to 0.75%. This is the second time in two months that the central bank has raised interest rates in an effort to curb inflationary pressures. This is amid the easing of pandemic…

Cryptocurrency Scams Targeting Millennials

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Crypto scams are now on the rise, with scammers seemingly setting their sights on younger demographics. A recent press release from Consumer NZ highlighted the case of a tax accountant in Auckland who lost $100,000 to such a scheme. The woman identified as Rachel was approached through a dating site.…
taxtime

New Zealand Raises Minimum Wage and Increased Taxes On The Rich

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The minimum wage for New Zealand has officially increased by 5%, now at $20. Many sectors of work have been affected by the Covid-19 pandemic, mostly those in hospitality, tourism, retail and construction. The people most likely to be affected by the Covid19 pandemic are the same people who are…

Tax statistics raise questions of fairness and equality

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New data from Inland Revenue (IRD) and Treasury shows that the richest segment of the population – known as high wealth individuals (HWIs) – pay an average of 12% of their income in tax. By comparison, those earning median incomes between $55,000 to $60,000 pay an effective tax rate of…

NZ Treasury Anticipates a NZ$1 Billion Blow

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Authorities expect the most recent nationwide lockdown, prompted by the return of new COVID-19 cases, to cost the NZ economy a billion dollars. BNZ bank economists estimate that the lockdown measure will impose a 1-2% impact on NZ’s 3rd quarter GDP. A spokesperson for the bank explained: “This estimate will…

Inland Revenue Grants Tax Relief For Short-Term Rental Providers

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Short-term accommodation providers, like Airbnb and Bookabach, now qualify for a COVID-19 tax break from the Inland Revenue Department (IRD). To be eligible for this tax exemption, short-term rental providers must have registered for GST and be forced into closure due the novel coronavirus pandemic. In addition, they must also…