Welcome to the new 2021 financial year. Fingers crossed we all have a much more stream-lined year compared to the hurdles that 2020 threw in our direction!
A few important points of interest in recent weeks are:
The Minister of Finance, Hon Grant Robertson, has announced proposed changes for residential property acquired on or after 27 March 2021. The proposed changes include:
- extending the bright-line test to 10 years
- amending the main home exclusion which would require tax to be paid on gains made for periods the property is not used as the owner's main home
- allowing newly built homes to use a 5 year bright-line test
- not allowing property owners to claim interest on loans used for residential properties as an expense against their income from those properties. This would start from 1 October 2021, and would also be phased in over 4 years for existing properties. There may be an exemption for newly built homes.
For early guidance on how the changes may affect homeowners, download the factsheets from the Tax Policy website at taxpolicy.ird.govt.nz
The new 39% marginal rate that applies to all income over $180,000 is now in force. Consider how the new rate will affect you and your business. Brief details can be viewed on the Accelerate Newsletter.
The effects of Covid-19 on business will be felt for years to come. A list of financial support for businesses can be found here. However note some of the subsidies are no longer available.
I attach a link to the latest Accelerate newsletter. Click on the link to discover some articles that may be of use to your business and practices.
If you pay Terminal Tax - please note today, 7 April is the due date for payment. If you are having trouble meeting your tax payments due to hardship as a result of Covid-19 you could try to contact the IRD and discuss your situation or set up an instalment arrangement. Further details here.
If you have any questions, comments, or suggestions please don't hesitate to contact us at any time.
With best wishes,
Luke Canton, Helen Canton, Veronica Griffin, Sarah Harrild & Philippa Muller
Flashpoint Accounting Ltd
7th April - Due date for the 2019 Terminal tax bill. This is the tax to pay on last years income.
7th May - Due date for the Provisional tax.
7th May - Due date GST (period ending 31 March).
If you are unsure if you have a tax payment to make please get in touch.
For a full list of tax related important dates please see the resources page on our website More....
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