The Budget

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The recent budget wasn’t full of surprises really, a conservative approach and most certainly the ‘no frills’ approach Government had indicated as we head into an election year.

But what were the tax changes? The big change announced was around the change to the Trustee tax rate. Currently this is 33% flat rate and the change will see an increase to 39% aligning it with the top personal marginal tax rate. This change is expected to apply from 1 April 2024. This change was in response to the High-Wealth individuals research work that has been completed and is seen as a way of equalising the tax system with the change expecting to generate another $350m of extra tax revenue. This research is full of mistruths and bias results but this government will ram it through if elected.

So what does this mean? At this point we are unsure… this is just an announcement at this point, legislation has not yet been passed so we are as in the dark as you are. For now, we ask that we have time to read and consider the legislation when it is passed so that we can consider the impact on you and your business. By the way, switching to a Company structure is not the easy way out here and IRD will be checking restructuring going forward (A good case for Audit Shield)!