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Archives for December 2020

Employers Will Need Accreditation to Employ Migrant Workers after Mid 2021

The Government has announced to introduce a new employer-assisted work visa to replace six temporary work visa types after mid-2021.

The new visa application process will be employer led.

Only accredited employers can hire a migrant worker on the employer-assisted work visa.

Before hiring a migrant on the new employer-assisted temporary work visa, employers will need to:

  • apply for accreditation (application fee will apply),
  • apply for a job check to make sure the role they want to fill cannot be done by New Zealanders, and,
  • request a migrant worker to apply for a visa.
The six visas that will be replaced are:
  • Essential Skills Work Visa
  • Essential Skills Work Visa — approved in principle
  • Talent (Accredited Employer) Work Visa
  • Long Term Skill Shortage List Work Visa
  • Silver Fern Job Search Visa (closed 7 October 2019)
  • Silver Fern Practical Experience Visa

Any current visas held under the above are not impacted and remain valid until their expiry.

Other work visas will not be impacted by these changes.

For more details, please check the Immigration New Zealand website here.

Moving to NZ?

Contact one of our migration consulting team by emailing or simply call 09 281 8885 to discuss your situation today!

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 New tax bill introduced to increase the highest individual tax rate to 39% from 1 April 2021

The government has introduced a new tax bill on 2 December 2020. As taxpayers, you may be affected by the following changes:

  • From 1 April 2021, the new highest tax rate of 39% will apply if an individual’s income exceeds $180,000.
  • The Inland Revenue is also demanding more details to be disclosed for trusts.

The bill also includes changes to increase the Minimum Family Tax Credit threshold for the 2020–21 tax year and to clarify that Inland Revenue can request information solely for tax policy development purposes.

For more information, please visit the Inland Revenue website here.

The Current Rates

NZ individual income tax is using progressive rates. This means the tax rate increases as the taxable value goes up.

Currently, individual income tax rates are as follows:

For Each Dollar of IncomeTax Rate
Up to $14,00010.5%
Over $14,000 and up to $48,00017.5%
Over $48,000 and up to $70,00030%
Remaining income over $70,00033%

Other NZ income tax rates are not changed:

  • Most companies and corporates are taxed at a flat rate of 28%.
  • For any income the trust earns, the tax rate is 33%.

Who Will Be Affected By The New Tax Rate?

From the year beginning 1 April 2021, for each $100 earned above $180,000, individual taxpayers will pay an additional $6, compared to under the current tax rates.

“It is also about keeping a lid on debt while ensuring we can maintain our investment in health and education. For 98 per cent of earners there won’t be any change.”

–Finance Minister Grant Robertson

What Is Included In “Individual Taxable Income”?

Taxable income can include income from:

  • working including salary, wages or self-employed income
  • benefits and student allowances
  • assets and investments including Kiwisaver and rental income
  • overseas income.

You may need to pay income tax for any of the above type of income you earn. You might have more than one type of income.

If you sell a residential property you have owned for less than 5 years, you may have to pay income tax as well. This rule also applies to New Zealand tax residents who buy overseas residential properties.

The government is also requesting more information from taxpayers to make sure people pay their correct share of tax.

According to Revenue Minister David Parker, the new tax bill includes powers to collect information from trustees to test compliance and the effective operation of the 39% tax rate and to further understand what trustees do with trust assets and income.

Tax Issues?

Contact one of our tax advisory team by emailing or simply call 09 281 8885 to discuss your situation today!

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