June 2023 Business Update
KiwiSaver Government Contribution
The final date to ensure you have made enough Kiwisaver contributions during the year to receive the $521.43 government Kiwisaver contribution for the 2023 year is 30 June 2023.
To be eligible, you need to have contributed at least $1,042.86 to your Kiwisaver between 1 July 2022 – 30 June 2023. Even if you have not contributed the full amount, you will still receive 50 cents for every dollar contributed between 1 July 2022 and 30 June 2023. You can contribute through:
Salary and wage deductions
Payments to Inland Revenue
Payments to your KiwiSaver scheme provider
You will not get the full contribution if:
You are over 65 years old
You turn 18 part-way through the year
You join part-way through the year
You no longer meet the eligibility criteria
For more information click here
39% Trustee Tax Rate
The Government has announced that it will align the trustee tax rate with the top personal tax rate of 39 percent from April 2024 to enhance tax system fairness and prevent high-income individuals from evading higher tax rates.
Recent data from the Inland Revenue Department reveals a 50 percent surge in income subject to the trustee rate, prompting the need for alignment.
The alignment is expected to generate $350 million annually, primarily affecting a small proportion of trusts. The government also plans to prevent over-taxation of certain trusts and proposes measures for deceased estates and trusts for disabled individuals.
For more information click here
7-Day Payment Processing for Banks
From 26 May 2023, banks will process transactions 365 days of the year including weekends and public holidays.
Inland Revenue will not be changing their payment processing:
Due dates for payments will still move to the following business day if they fall on a weekend or public holiday.
When Working for Families Tax Credits payments coincide with public holidays, they will be paid early.
Funds won't be sent for processing on weekends or public holidays.
Payments to Inland Revenue will show with the effective date of the bank transfer. This date may be a weekend or public holiday if your bank processed the payment over that time.