A Snap Shot Of Recent Tax Changes
The latest updates that may affect you or your business!
Extension of the reductions on fuel excise duty, road user charges and half price public transport until 31 January 2023.
Use of Money interest rates have increased effective from 30 August 2022. The debit interest rate is 7.96%p.a, an increase from 7.28%p.a; and the credit interest rate is 1.22%, an increase from 0.00% which had been applicable since May 2020.
Screening tests for the Cost of Living payment ahead of the 2nd payment due 1 September 2022 – this will put extra checks in place meaning those that are no longer living in NZ or have passed away should no longer receive the payment.
The ones in the pipeline!
Exemption from the interest deductibility changes for new and existing build-to-rent flats if there are 20 or more dwellings in one single development and if they offer 10 year tenancies (other conditions will apply) – this will help only a handful and we expect the number of taxpayers that will benefit from this change will be minimal.
The one abandoned quicker than we could blink an eye!
The proposal to standardise the application of GST to fees and services of managed fund providers took a fairly quick U turn. The proposed amendment would have required GST to be charged at the standard rate of 15% rather than the current rate which could be as low as 0%. This of course would have been passed on by the provider and therefore having the overall effect of reducing the savers funds.
