Articles by Matthew Gilligan
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.
The best things about attending Property School were learning how to do the numbers to get the most out of a property, when to ask for advice, and the different strategies you can look for when assessing a property. - Anon - June 2017
If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.
Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.