March 23, 2021
In a move to crack down on property speculators and to make housing more affordable for first home buyers, the Government has today unveiled a number of property announcements including extension of the bright-line test from five to 10 years, and removal of interest deductions for investors.
December 11, 2020
With Christmas just around the corner, most businesses will be thanking their employees and clients with gifts or entertainment. While tax might be the last thing you have in mind, make sure you’re not caught out by a surprise tax obligation.
December 2, 2020
With the Labour Government’s record win at the polls last month, the introduction of a top marginal tax rate of 39% is a certainty. Labour is at pains to point out that it applies only to individuals who earn more than $180,000 per annum (or the top 2% of earners in New Zealand) and that the additional revenue raised will be used to help control debt and protect vital services, like health and education.
September 11, 2020
This week Finance Minister Grant Robertson made headlines with the announcement of the Labour Party’s 2020 Election tax policy. The key point in this policy is the reintroduction of a 39% top personal tax rate. This will apply from 1 April 2021 to those earning over $180,000 per year. We ask what this proposal is likely to achieve if (when) it is implemented.
January 27, 2020
Calling all Australian ex-pats - do you still own a family home in Australia? If you are relying on the family home exemption from capital gains tax in Australia, you may need to think again. The Australian government have recently passed an Act, which puts the entire CGT exemption for your home upon sale at risk. If you bought your home before 9 May 2017 and have since become a foreign resident, you may have a significant decision to make, and soon.
September 18, 2019
The Inland Revenue is currently seeking feedback on amendments to the land taxing rules as they apply to “habitual renovators”. Generally, if you buy land with the intention of selling it to make a profit, you will be taxed on the proceeds of that sale. However, there are certain exemptions that apply to the sale of land where it is used by the person as their main home, residence or business premises.
May 18, 2018
Finance Minister Grant Robertson delivered the Coalition Government’s first budget yesterday. The focus of Budget 2018 is on public spending and infrastructure investment and there is very little in the way of tax announcements. Given the appointment of the Tax Working Group (TWG) in late 2017, it is unsurprising that there are few tax changes announced as part of Budget 2018. Any significant tax changes are instead likely to be driven by the TWG, which is expected to deliver its final...
May 10, 2018
Property Tax Changes ... Labour is making good on its election policies with tax changes introduced in March that are aimed at increasing housing affordability. Bright-line test extended to 5 years The first change being the (much anticipated) extension of the residential bright line test from 2 years to 5 years. Intention of bright-line rule – buying for resale always taxable The bright-line test you may recall, was introduced to tighten up the existing land taxing provisions. If you purchase land...
May 10, 2018
The government has released a discussion document seeking feedback on proposals to implement a R&D tax credit regime with effect from 1 April 2019. The proposed R&D incentive will be in the form of a 12.5% refundable tax credit on eligible expenditure available to businesses doing R&D in New Zealand. Board proposals The proposals are very much a work in progress, with feedback being sought on various aspects of the regime. However, in broad terms the R&D credit regime proposes: That...