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Articles by Matthew Gilligan

Matthew Gilligan

Breaking News - Tax Rate Change

Yesterday (9 September 2020) Labour announced a new tax rate of 39% on personal income exceeding $180,000 per annum. Key points that we know so far:

•  Applies to individuals only, i.e. an individual on a salary of, say, $200,000 will pay an additional $1,200 per annum

•  It does not apply to combined household income, i.e. a couple each earning $100,000 for a total of $200,000 per annum will not pay any more tax

•  All other rates and brackets remain the same

•  Any new taxes or further income tax increases ruled out for their next term (if elected).

•  Applicable from next year

•  No changes proposed to trust (33%) or company (28%) tax rates

The last point is significant, emphasising the importance of getting the right business / investment structure in place. There will be tax planning opportunities arising out of the differential between the trust and company rates and the new highest rate. It would not surprise me if Labour revisits their position on the trust tax rate at least, but that is how things stand at present.

If you would like a review of your tax position and structure, please phone us on +64 9 522 7955. 

Matthew Gilligan
Matthew Gilligan
© Gilligan Rowe & Associates LP

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Thank you for the incredibly detailed assessment of the improvement discrepancies, all the considerations and the suggested course of action. You've made everything understandable and clear.

In all a good result, thank you very much for all your involvement Maggie, you've been wonderful to work with and certainly made my first home buying rodeo a lot smoother than it might otherwise have been!

Thanks again, I wouldn't be making such informed decisions without you!

- Ben Tong, November 2020

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