Category New Zealand Taxation

New Bill to Revamp Provisional Tax System

August 9, 2016 New Zealand Taxation

Tax deductionsSmall business in New Zealand will soon have an easier time paying their Provisional Tax, if a new Bill is approved.

On Monday the Minister of Revenue Michael Woodhouse announced that new bill has been introduced to Parliament, detailing the earlier proposed updates to Provisional Tax payments.

The new bill details the new Accounting Income Method for calculation and payment of Provisional Tax by small and medium sized businesses.

Under the new system, small businesses using appropriate accounting software will be able to calculate their Provisional Tax obligations based on their realized incomes, instead of estimating their potential incomes for the year.

It is believed that the eased filing system will ease the administrative burdens for businesses, allowing owners to concentrate on o...

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New Infrastructure Costs to be Borne By Buyers

July 4, 2016 New Zealand Taxation

The New Zealand Council for Infrastructure Development is calling for the cost of new housing developments to be passed to buyer, not developers.

In a press release on July 4th the New Zealand Council for Infrastructure Development (NZCID) called on the government to implement a plan for the payment and collection of funds from the newly announced $1 billion interest free housing infrastructure loan.

Over the weekend the government announced its new program which would grant loans to local councils to pay for infrastructure developments to new residential property areas.

The NZCID cautioned that if “development levies” were used to pay for the loans, land developers would end up facing higher risks, and, ultimately, passing on the risks in the form of higher prices to buyers.

Howeve...

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Statistics Shows New Zealand’s Wealth Gaps

June 28, 2016 New Zealand Taxation

New data shows that large wealth gaps exist between different age groups and ethnic groups in New Zealand.

On June 28th Statistics New Zealand released new data regarding the distribution of net wealth across different groups in the country.

It was shown that approximately 70 percent of total household net worth in New Zealand is held by the top 20 percent of households in the country.

The distribution of net worth was heavily dependant on age, with people aged 15-24 years old having a median net worth of NZD 1 000, while those aged over 65 years having a net worth of NZD 288 000.

There was also marked differences between ethnic groups, with Europeans having a median household net worth of NZD 114 000, while Maori, Pacific people, and Asian groups holding NZD 23 000, NZD 12 000, and NZD ...

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Import Levels Rising in New Zealand

June 27, 2016 New Zealand Taxation

Import levels are rising in New Zealand, with the import of consumer gods leading the charge.

On June 27th Statistics New Zealand released new information showing that over the month of May the goods trade surplus in the country reached NZD 358 million.

The total of all goods imported into New Zealand over the curse of May rose by 5.7 percent compared to the previous month, reaching a level of NZD 4.2 billion.

Over the same time period, the level of exports from New Zealand rose by 5.1 percent, reaching 4.6 billion, leading to a total differential of NZD 358 million.

The rise in imports was led primarily by a 16 percent increase in the level of consumer goods imported, a rise equivalent to NZD 152 million worth of extra imports.

Most export groups also rose in May, however, the export of...

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