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Thin Capitalisation Rules and Australian Investors in New Zealand Rental Property

Thin Capitalisation Rules and Australian Investors in New Zealand Rental Property

If you’re an Australian resident investing in rental property across the Tasman, there’s a New Zealand tax rule that may surprise you — the thin capitalisation rules.

While these were originally introduced to prevent large international companies from over-funding their NZ operations with debt, Inland Revenue has confirmed they also apply to non-resident individuals.

That means if you’re an Australian investor who owns a rental property in New Zealand (for example, in Queenstown or Auckland) and your borrowing is more than 60% of the property’s value, you could face restrictions on your interest deductions for New Zealand tax purposes.

Making Sense of “Tax Pooling” When Expanding into New Zealand: A Simple Guide for Australian Family-Owned Businesses

Making Sense of “Tax Pooling” When Expanding into New Zealand: A Simple Guide for Australian Family-Owned Businesses

If your Australian-based business is trading in or expanding into New Zealand, it’s important to understand how New Zealand tax-compliance tools like tax pooling can support your operations – especially when it comes to managing cash flow, tax instalments and the unique obligations under Inland Revenue (IRD).

At NZ Tax Accountants Pty Ltd we specialise in helping Australian businesses navigate these rules.

Tax pooling offers a smart alternative to the standard approach for paying provisional tax in New Zealand. For family or small business owners based in Australia, it means you can gain flexibility around the timing of your payments into New Zealand tax, while still being treated by the IRD as having paid on time – a meaningful benefit when your business has seasonal sales, variable income or cross-border growth phases.

Inland Revenue Adopts a Tougher Stance on Overdue Tax Debts

Inland Revenue Adopts a Tougher Stance on Overdue Tax Debts

Running a business across the Tasman comes with plenty of opportunities – and a fair share of responsibilities.

If your Australian business operates in New Zealand, it’s essential to stay on top of your New Zealand tax obligations.

Inland Revenue (IR) has recently stepped up its approach to unpaid taxes, introducing new technology and stricter recovery practices that all business owners should be aware of.

Ignoring overdue taxes is no longer an option.

Inland Revenue now has the tools and policies in place to identify and act quickly on outstanding debts – often before taxpayers realise how serious things have become.

Understanding the FBT Treatment of Open Loop Cards for Employees – What Australian Businesses in NZ Need to Know

Understanding the FBT Treatment of Open Loop Cards for Employees – What Australian Businesses in NZ Need to Know

When rewarding staff, many Australian businesses operating in New Zealand use prepaid “open loop” cards — a flexible, cash-like benefit that employees love.

But recent changes from Inland Revenue (IR) mean the tax treatment of these cards has shifted, and understanding the difference could save your business from compliance headaches.

If your Australian business provides open loop cards (like Visa or Mastercard gift cards) to New Zealand-based employees, here’s what you need to know about how the Fringe Benefit Tax (FBT) and PAYE rules now apply.

GST Treatment of Accommodation in a Building: What You Need to Know

GST Treatment of Accommodation in a Building: What You Need to Know

Inland Revenue’s latest decision clarifies when accommodation is a “commercial dwelling” for GST purposes.

Find out what this means for your business — and how to maximise GST input tax deductions.

Thinking about providing short or long-term accommodation? A recent Inland Revenue decision sheds light on how GST applies to accommodation providers — especially when a property is classified as a commercial dwelling.

This clarification could significantly impact your GST obligations and input tax claims. Learn what it means for your business and how to stay compliant.

Investment Boost Scheme 2025: What Australian Businesses Expanding into New Zealand Need to Know

Investment Boost Scheme 2025: What Australian Businesses Expanding into New Zealand Need to Know

If you’re an Australian small business expanding into New Zealand, the 2025 NZ Budget has introduced a major incentive you’ll want to know about — the Investment Boost scheme.

Designed to encourage productivity and growth, this initiative lets eligible businesses claim an upfront 20% tax deduction on new investment assets.

Whether you’re buying equipment, developing property, or improving farmland, understanding how to qualify could deliver significant tax savings for your NZ operations.

New Zealand Issues Determination on Per Diem Allowances for Screen Production Industry

New Zealand Issues Determination on Per Diem Allowances for Screen Production Industry

If your Australian business is involved in New Zealand film or screen production, there’s a new Inland Revenue determination that could affect how you pay and report per diem allowances.

Understanding this change now will help ensure your cross-border projects remain compliant and cost-efficient.

From 1 July 2025, specific Inland Revenue guidance will apply to per diem allowances paid to contractors and entertainers in New Zealand’s screen production sector – a timely reminder for Australian production companies, crew suppliers, and studios operating across the Tasman to review their pay structures and tax obligations.

NZ Tax Rules for Forestry Businesses in the Emissions Trading Scheme

NZ Tax Rules for Forestry Businesses in the Emissions Trading Scheme

If your Australian-based business owns or manages forestry land in New Zealand, participation in the Emissions Trading Scheme (ETS) can significantly affect your New Zealand tax obligations.

The ETS rewards or penalises forestry owners based on carbon emissions and sequestration, but it also creates income tax and GST implications that are often overlooked.

Inland Revenue’s Interpretation Statement IS 25/13 clarifies how income tax and GST apply to the acquisition, sale, and surrender of New Zealand Units (NZUs) – the carbon credits issued under the ETS.

Understanding these rules is essential for avoiding unexpected tax liabilities and ensuring your forestry activities remain compliant.

New Zealand’s Tax Guidance on Short-Stay Accommodation: What It Means for Australian Residents

New Zealand’s Tax Guidance on Short-Stay Accommodation: What It Means for Australian Residents

Running short-stay rentals like Airbnb or Bookabach in New Zealand can be a great way for Australian businesses to diversify income — but it can also create unexpected New Zealand tax obligations.

Inland Revenue has recently clarified how income tax rules apply when a close company (a company with five or fewer shareholders) provides short-stay accommodation.

If you’re an Australian resident or family business using a New Zealand company to hold or manage property, this new guidance could directly affect how your income is taxed, how expenses are claimed, and what benefits your shareholders may be deemed to receive