Category: Tax


Government drops a bomb on residential rental owners

This morning there was certainly no kindness shown by the Labour Government to residential rental owners. As if landlords were not already dealing with enough given the Healthy Homes Standard, the rental loss ring-fencing, the current 5-year brightline test, and the tough new tenancy rules, they will now have to deal with a 10-year brightline […]

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Are you up to speed with your new trustee obligations?

The concept of what a Trust is has caused confusion for many years. This confusion has led to the introduction of a new trust Act with further changes to come. The changes introduced by the Trusts Act 2019 came into effect on 30 January 2021. The Act aims to make trust law more understandable with […]

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COVID Resurgence Support Payment

The Government has introduced legislation for the Resurgence Support Payment (RSP). When the Government activates the RSP, viable businesses that experience a 30% drop in revenue due to the COVID alert level increasing to 2 or higher for a minimum of 7 days can apply for the RSP. The RSP is available nationally even if […]

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Window of opportunity for asset deduction closing

The opportunity for business owners and landlords to take a full tax deduction for new assets costing $5,000 or less is rapidly disappearing. The temporary increase in the low-value asset threshold from $500 to $5,000 will end on 16 March 2021, at which time the threshold will reduce to $1,000. The Government introduced the temporary […]

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Have you received Inland Revenue’s email on the Brightline test?

If you’ve had a property sale in the last few years you are likely to be the lucky recipient of the Inland Revenue’s recent email campaign on the brightline test. The brightline test can apply to a residential property sale that occurs within 5 years of purchase (previously 2 years) and where the main home […]

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That one’s now in the bag. What happens when the rubber hits the road?

After an election campaign where millions of dollars of funds were promised by the various parties, the rubber will soon be hitting the road to increase our debt and to deliver on these promises. So what does the weekend’s election results mean for business? Clearly with the Labour party majority, they no longer require other […]

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Top tax rate change – business considerations

With the election less than two weeks away, the business community is discussing the various parties’ policies and considering the potential impact on their business. Of particular interest is the Labour Party’s proposal to reintroduce a top personal tax rate of 39%. With taxpayers looking to maintain tax efficiencies, we expect the IRD will closely […]

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COVID-19 Resurgence Wage Subsidy

Yesterday the Government announced a 2-week COVID-19 Resurgence Wage Subsidy payment that will be available for employers, the self-employed, and independent contractors, who are financially impacted by the resurgence of COVID-19 and changes to Alert Levels. The resurgence wage subsidy is a nationwide wage subsidy which covers the period Auckland is at Alert Level 3 […]

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Australia dual residency risk

Recent changes in Australia could mean a New Zealand business may be deemed to be tax resident in both Australia and New Zealand, even if the business does not trade in Australia. Being dual resident can impact on the New Zealand business in a number of ways, including needing to determine the primary place of […]

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Trust Health check – is your trust still fit for purpose?

Due to changes being introduced by the new Trusts Act it will be prudent to undertake a health check on your Trust this year. Many trusts have been set up for the purposes of achieving asset protection, estate planning or structuring efficiencies, and those purposes are more than likely still valid today. The new Trusts […]

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Window of opportunity for Healthy Home improvements

COVID-19 has had a massive impact worldwide and the New Zealand government has responded by making a number of short-term changes to the income tax rules to encourage growth in the economy. One of the changes is a temporary increase in the low-value asset threshold from $500 to $5,000 through to 16 March 2021, with […]

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