Hopefully the “post-Covid” reference in the title is not tempting fate, but at the time of writing New Zealand appears to be in an enviable position in terms of control of the public health side of the Covid pandemic. However, battling through the economic fallout is going to be just as challenging.
All readers will be aware of the government taking multiple actions across multiple different platforms to assist the public and employers as they work through the financial fallout. So I thought it would be useful to summarise some of the key tax measures that have been instituted in the past three months.
While the above concessions are all welcomed, in our view the IRD could have gone further. We would like to have seen them defer the implementation of the ring-fencing rules until the current income year has finished. Consideration should also have been given to an exemption from the application of the bright-line rule where one is forced to sell a property due to financial difficulties caused by Covid. That said, given the government’s antipathy to property investors we can’t say we are surprised that such measures were not taken. An additional measure that would be welcomed by tourism affected people, would be tax concessions to spread redundancy payments across multi-tax years. There have been murmurings of this in the wind, but nothing yet.
If you need help with anything mentioned in this article, please contact GRA on +64 9 522 7955, [email protected] or by filling out our online form.
Just wanted to pass on how incredibly impressed I was with Quade Fraser, I have some complicated aspects to my personal situation and was looking at the a purchase of a property while needing to consider multiple individuals, a company and with my contracting and GST considerations.
I asked the consultant multiple questions over our meeting and he was able to calmly and articulately answer everything and give me cause to think about a whole lot of areas I would not have even thought of including; bright line, GST, mixed-use assets, trust structures (considering children beneficiaries), utilising a company structure etc. The bottom line is, I have a much better idea on what we need to do to structure my affairs in the most beneficial way for my family over the long-term.
Very knowledgeable, professional and with a great manner too. I got a huge amount of value out of the meeting.
- Kate, June 2023
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