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The tax grapevine is currently working overtime, as it looks to second guess what the coalition Government’s plans are relating to the trustee tax rate (“the trust tax rate”).

The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill was introduced on 18 May 2023 as part of the last Government’s budget.  A key change in that Bill was...

One positive for residential rental investors which came out of the coalition agreement with ACT is that National have agreed to bring back full deductibility of interest on residential rentals a lot sooner than originally planned...

National’s Back Pocket Boost policy document is to be supported by both ACT and NZ First, will result in adjustments to the tax thresholds for individuals which will provide some welcome relief.  Going forward, National will “assess the impact inflation has had on the average tax rates faced by income earners, with a view to making adjustments to tax thresholds that are affordable and responsible in light of the economic and fiscal conditions at the time”.

The current and proposed tax rates are...

In addition to the tax rate changes, National will introduce a FamilyBoost childcare tax credit.  The rebate will be 25% on childcare costs paid of up to $300 per week.  In other words, the maximum rebate will be $75 per week.  The rebate will abate for those with household income above $140,000 p.a. and will be fully abated when household income hits $180,000 p.a.

The not-so-good news is that the on-again, off-again deduction for depreciation on commercial buildings is off again.  It is not clear when this change is proposed to take effect and no legislation has been sighted at this point, however, we expect it will take effect from the beginning of the 2025 income year.

We can assist with valuation of businesses and shares to support shreholder transactions, merger and acquisition activities and relationsihp property matters.

Please contact Bruce Watt (brucew@nsatax.co.nz or phone on
09 309 6505).