New tax rate for Kiwi’s top earners
The new 39% top tax rate bill has made law. From 1 April 2021, Kiwis with a personal income over $180,000 will be taxed at 39%.The law is believed to impact only 2% of New Zealanders and is expected to bring in more than $500 million a year.
This Taxation Rate and other Amendments Bill also gives the Commissioner of the IRD more powers to obtain more information on trusts. This is to assist in future tax planning and to ensure trusts are used for the purposed intended and not as a method to avoid the 39% tax rate.
Sick leave to increase in 2021
The government is also starting the process of passing a law to double sick leave from five days a year to ten days. The bill is expected to pass in mid-2021 and will go through the full select committee process so it’s able to receive submissions.
We will release more information once available.