April 2025 Update

Hi all, 

We hope everyone enjoyed their summer and we are now looking ahead to the next financial year.  

Questionnaires:

We will be sending out the 2025 Client Questionnaires over the next two weeks.  Please look out for these in your email accounts. 

Tax payments

Some upcoming dates to note:

• 7th April 2025 - 2024 terminal tax payment date 

• 20th April 2025 - Dividend withholding tax due for 31.3.2025 dividends 

• 7th May 2025 - Final 2025 provisional tax instalment for provisional tax paying individuals and trading entities with a March balance date

• 7th May 2025 - GST for all periods ending 31 March 2025 for GST-registered entities (1, 2 and 6 monthly filing periods)

• 6th June 2025 - FBT returns due for periods ending 31.3.2025 

• 15th June 2025 – Final payment date for 2024 income tax purchasing via Tax Management New Zealand

If you are due to pay 2024 terminal taxes, you should have received a tax payment notice from us, for your 2024 Terminal Tax.  As noted above, the payment due date for this is 7th April 2025.  If you believe you have tax to pay and have not received a notice, please contact us as soon as possible.    Should you have any difficulties making the payment, please also let us know, there are options including purchasing the tax later via Tax Management New Zealand Limited or entering into a payment arrangement with the IRD. 

Trust tax rate changes

It’s a good time to remind you that the trustee tax rates for trusts increased to 39% effective 1st April 2024, up from 33%. This will impact any retained trustee income in the 2024/2025 tax year. The 39% tax rate applies to amounts retained as trustee income and not allocated to individual beneficiaries.

Where income is allocated to beneficiaries, their individual tax rates apply.  Most trusts can allocate income to beneficiaries, however where the beneficiaries’ individual income exceeds $180,000, income is taxed at 39%. 

We will review all trustee income and discuss the options with you before finalising any accounts this year. The Bill also applies to estates, however estates are exempt from the 39% rate for 12 months from the date of death.

During the 12-month period, the estate will be taxed at the personal tax rate of the deceased person. 

If you are concerned about the trust tax rate changes, please contact us as we can work through the changes with you. 

Personal income tax thresholds

From 31 July 2024, long overdue increases to the personal income tax thresholds were introduced.The new rates are as follows:  

For each dollar of income	Tax rate
0 - $15,600	10.5%
$15,601 - $53,500	17.5%
$53,501 - $78,100	30%
$78,101 - $180,000	33%
$180,001 and over	39%

Minimum wage increases

As of July 1st 2024, the adult minimum wage in New Zealand increased to $23.50 per hour, while the starting-out and training minimum wages rose to $18.80 per hour.  

Bright-line Test

As of July 1st 2024 the Bright-line test changed to 2 years when buying or selling residential property that isn’t excluded from the test (previously it was 5 years for newbuilds and 10 years for other properties). 

IRD Two Factor Authentication

The IRD is implementing 2 factor authentication when you log into your myIR.  Please get in touch should you require any assistance. 

IRD Collections 

The IRD has continued to increase actions around recovery of debt.  Where tax debts are outstanding and there has been no effort to communicate with the IRD, they may look at initiating wind-ups.  

To avoid this, we strongly recommend you get in contact with us to discuss any outstanding tax debt and options to repay this. The IRD seek to have open communication and are more willing to consider instalment arrangements when directors have been upfront from the start.  Ignoring these debts is not an option and front-footing the issue will have a more positive outcome. 

Team Changes

Sadly, Dianne Fuller will be departing our company, after many years with Murray Brown and three years with Nightingale Paton, as she is likely going to move out of Auckland with her family. 

Her last day will be 23rd April. We are very sad to see Dianne go and wish her success in her new role.    

We would also like to take the opportunity to introduce Amy Baker to the team.  Amy has a marketing background and is helping us part-time in administration and marketing.    

Please get in touch if there is anything we can assist with. Michael, Anna and the team 

Michael.paton@naca.co.nz 021595811

Anna.paton@naca.co.nz 021595112 

www.nightingalepaton.co.nz