1. COVID-19 Leave Support Scheme
With the COVID wave currently prevalent in New Zealand again, just a reminder that the Leave Support Scheme is still available to employees that can't work from home.
This includes employees (and self employed people) who either:
- have COVID-19
- are caring for a dependant who has COVID-19, or - are at risk of severe illness from COVID-19, or has a household member who is, and have been advised by a medical practitioner to self-isolate.
Details can be found here: Click Here
The NZ government announced in the 2023/24 Budget that the trust tax rate will be increasing from 33% to 39% from 1 April 2024. When the 39% top personal tax rate was introduced from 1 April 2021, the government had been advised by Inland Revenue that the trust rate should also increase to minimise incentivising taxpayers to make use of trusts to avoid the 39% top personal tax rate. Specific trusts, primarily for the benefit of disabled persons, will continue to be subject to the 33% rate.
The increased trust tax rate, along with the increased compliance costs brought about through the trust disclosure rules and the Trustee Act 2019, understandably means that the use of trusts is likely to become less popular.
The increase in the trust rate is likely to see an increased interest in PIE investments, with the 11% tax rate differential being of more interest than the previous 5% tax rate differential.
If you have a trust and would like to discuss your tax options, please don't hesitate to get in touch.
Contact Us ... Click Here
3. Apprenticeships
The Apprenticeship Boost program has been extended through to the end of December 2024.
This will enable an estimated 30,000 apprentices to start or continue receiving support for the first 24 months of their apprenticeship or until the initiative ends in December 2024.
What is Apprenticeship Boost?
Apprenticeship Boost is a payment made to employers to help them keep and take on new apprentices.
The payment is made directly to employers. It means apprentices can keep earning while training towards their qualifications. You can get $500 a month, per apprentice, not including GST. If you're GST registered, you'll be paid the amount plus GST. Who can get it?
You can get Apprenticeship Boost if your apprentice is enrolled and engaged in a:
New Zealand Apprenticeship
Managed Apprenticeship.
For more information on eligibilty click here
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