From 27 March 2021 the Brightline test was extended to 10 years on all residential investment properties except for new builds which remain at 5 years.

MINIMUM WAGE

April 1, 2022

The new minimum wage rates, before tax, are:

Adult – $21.20 an hour (up from $20.00)
Starting-out – $16.96 per hour (up from $16.00)
Training – $16.96 per hour (up from $16.00)

TOP TAX RATE INCREASES TO 39%

December 2, 2020

The government has announced an increase to the top individual tax rate to 39% on income over $180,000.

This is effective form 1 April 2021.

There are consequential amendments that will happen as a result of this and these include changes to Fringe benefit tax, Employer Superannuation Contribution Tax, Resident withholding tax and Residential land Withholding tax rates.

At this stage Company and Trust tax rates are unchanged at 28% and 33% respectively, however Inland revenue have advised they will be watching closely the use of trusts.

The Dividend withholding Tax rate is unchanged however those earning $180,000 or more may now have to lodge a tax return to pay the additional 6% on dividend income.

SMALL BUSINESS CASHFLOW SCHEME CHANGES

November 17, 2020

The government have announced changes to the small business cashflow scheme as follows:

Applications are now open until 31 Dec 2023.

No interest charged if loan is repaid within 2 years from drawdown.
Fewer restrictions on what the money can be spent on.

This rules apply retrospectively to all loan taken out.