Bright Line Extension

March 30, 2021
After 27 March 2021, if you sell a residential property within 10 years of purchasing it, any increase in value will be taxable income.There are some exemptions such as the main home, if the property is transferred to you under a relationship property agreement, or if the pr...
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For residential rental properties purchased after 27 March 2021 that are not new builds, you will not be able to claim any interest deductions. Interest incurred on a new build that is bought for investment purposes is still able to be claimed as an interest deduction. There...
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Minimum Wage Increase

March 12, 2021
From 1 April 2021, the adult minimum wage will increase from the current rate of $18.90 per hour to $20.00 per hour.The starting-out and training minimum wage rates will also increase on 1 April 2021, from $15.12 to $16.00 per hour remaining at 80% of the adult minimum wage....
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Prior to 17 March 2020, if an asset was purchased that cost more than $500, the asset was capitalized, and no immediate tax deduction was available. Depreciation (the write down of the asset over the assets life, calculated at a specific rate set by the IRD) was allowed as a...
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We are often asked “what expenses can be claimed as a deduction against contracting income?” To claim a deduction, there must be a nexus between the expense incurred and the income being earned.  If there is no nexus, the expense is unlikely to be deductible (and wo...
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In 2011, the government changed legislation to remove depreciation being claimed on all buildings. Due to Covid-19, the government have done a U-turn on this decision and from 1 April 2020, have reintroduced depreciation on commercial and industrial buildings. The appli...
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Welcome to part 2 of our Trust Act updates – what you need to do now to prepare for the new Act. Part 1 of our series of articles, covered an overview of the new Act and can be read here.The new Act commences from 31 January 2021 and its application will be different ...
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Companies 28% Tax Rates

October 16, 2020
A company has a tax rate of 28%. This is a flat tax rate and applies to all company profits.So, why not structure your business, investments, or contracting in a company and only pay tax at 28%? Individuals marginal tax rate is 33%, so would you not be 5% better off and pay ...
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Accountants have received guidance about the new Trust Act 2019. This new law (the first in more than 60 years) will affect everyone who is involved with a Trust. The new trust law will be effective from 31 January 2021 and includes clarification of the existing trust laws a...
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39% Top Marginal Tax Rate

October 9, 2020
The Labour Party has announced that if re-elected, they would introduce a new marginal tax rate of 39% for an individual’s income over $180,000. The 39% tax rate would only apply to income over $180,000 and the remainder of an individual’s income will be taxed at current...
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