Check Out The Latest NZ Tax Updates
We include updates and reminders about NZ tax changes for those carrying on a business in New Zealand and for individuals who still have tax ties there.
Inland Revenue has issued a new statement to assist in determining the deductibility for New Zealand income tax purposes when costs are incurred in relocating employees to a distant workplace.
This may also address the common question posed by Australian-controlled New Zealand companies where Australian residents are sent to carry out work in New Zealand.
Inland Revenue has announced that tax relief and income assistance are available to people affected by the downturn in business in New Zealand as a result of the outbreak of Coronavirus COVID-19.
They have announced a range of ways to help depending on a person’s circumstances.
If you supply telecommunications tools to your New Zealand employees and pay for Internet plans you should be mindful of an announcement by Inland Revenue with regard to income tax deductibility of phones and phone plans.
Unlike in Australia, there is no opportunity to salary sacrifice in New Zealand.
Australia brought in legislation which impacts on some New Zealand companies supplying product back to Australia.
The new rules particularly impact on Internet sellers and other New Zealand businesses that supply product to consumers in Australia (rather than those that supply to Australian businesses).
If you are on your way to New Zealand and joining a guided hunt with the intention to bring animal souvenirs back to Australia, is probably going to be New Zealand GST to pay. But depending on what it is will determine how much, if any, GST will be added to the price.
New Zealand is getting closer to implementing a significant change which will impact on a number of Australian businesses who are exporting small consignments to New Zealand customers.
The current practice is that when goods are shipped to New Zealand in consignments valued at less than $400, they are allowed to pass through New Zealand Customs directly to the customer.
New Zealand’s GST rules which have allowed Australian businesses to send low value consignments to customers in New Zealand without having to account for New Zealand GST, are about to change.
At present, New Zealand employers file their reports consisting of details of employee earnings, PAYE (withholding) and Kiwi Saver information, on a monthly basis.
That is about to change.
Everyone who does business in New Zealand must pay ACC levies.
This is, in effect, an extension of Australia’s WorkCover levy system.
The New Zealand government signed up to the Automatic Exchange of Information (AEOI) initiative a little while ago.
This is a global OECD initiative to combat tax evasion, particularly against those who use foreign tax jurisdictions to hide their wealth and evade paying tax in the process.
What does that mean for you?
The New Zealand government has advised that the minimum wage rate for adults will be increasing by $0.75 to NZ$16.50 an hour effective 1 April 2018.
In New Zealand, the adult minimum wage rate applies to all employees aged over 16 years who are not classified as “starting out” workers or “trainees” who are involved in supervising or training other workers.
With the growing integration between software packages such as XERO, MYOB and Reckon comes changes to the way that Inland Revenue will be processing data in the future.
One significant change is called Payday Filing which impacts on employers and the way they file their employer reports.