Tax Changes for April 01 2018
TAX CHANGES & NZ Business
Tax Changes are coming for New Zealand Business.
In NZ April 01, for many businesses, is the start of a new financial year.
It’s a time where new goals and budgets are set and action plans are made.
This year in New Zealand, April 01 also brings with it a few new Tax Changes to be aware of, that you might need to consider in your budgets and planning. Increase to Minimum Wage:
From 1 April:
Minimum wage will increase from $15.75 by $0.75c to $16.50
The Starting Out / Training wage minimum rate will increase from $12.60 to $13.20, being 80% of Adult minimum wage.
Increase in Income Tax Thresholds:
From 1 April 2018:
The $14,000 income tax threshold will increase to $22,000 – with the tax rates being 10.5% of the first $22,000
The $48,000 threshold to $52,000 – with the tax rates being 17.5% of the first $52,000
AIM – New Prov Tax System from April 2018
From 01 April 2018 this will come into effect, this is aimed for small businesses with an annual turnover of under 5 million.
This new provisional tax method allows more regular payments to be made rather than the standard three dates. It is best suited for anyone with fluctuating income, such as seasonal income or if you are new to business or it is growing, and it may be hard to forecast your income accurately.
The benefit is in with more payments this allows a larger spread so lowers the payments.
You will need accounting software such as Xero, MYOB or Reckon.
The filing is aligned with your GST dates, and if you are not GST registered you will file these two-monthly.
If you feel this may be suited to you or want more information about the AIM Tax System please CONTACT US
Or if you’d like to read more on this – check out the IRD website – CLICK HERE