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.
We were about to subdivide our section and needed property tax advice. Googled "who's any good" and GRA were in the top 3 on a few sites that recommended providers. We worked with Anthony Lipscombe. Very easy to deal with, comprehensive chat/ conversation that led to a written report by Anthony where his thinking was sharp, clearly communicated, coming at aspects from multiple points of view. i.e. he took time to make sure the reader (my wife and I) completely understood (in plain English) what he was saying. Highly recommended.
- Jason C, October 2023
Investing in residential property?
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.