April 24, 2017 New Zealand Taxation
The Finance Minister Steven Joyce has indicted that if the National party is re-elected, then it will raise the tax threshold on personal incomes.
The Minister explained that the current average salary in New Zealand is NZD 55,000 per year, while the threshold for the 30 percent marginal tax rate is NZD 48 000.
The disparity between the pay levels means that some people who are earning the average wage will be paying the top tax rate.
Further, if the same earner is paying off their student loan, then their effective marginal tax rate will be 42 percent.
Steven Joyce added that when taxes are that high “…we rightly worry about whether young people can save for a house...Read More
January 17, 2017 New Zealand Finance
In a new report published on January 16th, Oxfam New Zealand has revealed the state of income inequality in New Zealand, claiming that a small number of individuals in the country control more wealth than a significant portion of people.
In its report, Oxfam claimed that just 2 individuals have more wealth between each other than all the wealth held by approximately 30 percent of New Zealand adults.
Further, the richest 1 percent of all New Zealanders collectively hold 20 percent of the country’s wealth, while the bottom 90 percent of people holds less than half the country’s wealth.
The results of the report are based on analysis of total wealth, and not disposable income, as many high-wealth indivi...Read More
November 24, 2016 New Zealand Taxation
On November 22nd the Minister of Revenue Michael Woodhouse announced that special measures have been enacted to ease the filing burdens of taxpayers impacted by the earthquake in Kaikoura.
The Minister explained that following an Order in Council the IRD will waive the Use-of-Money-Interest on any late payments, which are a result of the earthquake.
The waiver is currently scheduled to last until January 31st, although it is not impossible that the deadline may be extended further if such a step is deemed necessary.
The Minister also noted that the Inland Revenue has opted to drop its own late-filling and late-payment penalties for anyone affected by the recent quak...Read More
November 16, 2016 New Zealand Taxation
On November 16th the Revenue Minister Michael Woodhouse and Small Business Minister Craig Foss announced that the results of new survey have shown that small businesses in New Zealand are spending a decreasing amount of time each year on their tax filing obligations.
On average businesses in New Zealand spend 27 hours each year on their tax compliance.
The current time spent on compliance is 25 percent less than the amount of time which was spent in 2013.
The results of the survey showed that business owners found that recording information was the most time consuming aspect of their tax obligations.
GST was found to be the most time-consuming tax type, requiring an averag...Read More