GRA Blogs

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 or fill out our online form



Matthew Gilligan
Director
© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

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.
Testimonials
What I enjoyed most about Property School was the comprehensive coverage of all angles related to property investment. The speakers were highly professional. - Stephen Fagan - September 2017
logo

Seminars and workshops for property investors, business owners and anyone seeking to create and protect their wealth.

View all our upcoming events
Learn More

Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.

We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.

Learn More
TOP