March 2023 Business Update
Minimum Wage Increase
The adult minimum wage in New Zealand will increase to $22.70 per hour from 1 April 2023, an increase of $1.50 per hour from the current rate of $21.20 per hour.
The training and starting-out minimum wages will also increase to $18.16 per hour, remaining at 80% of the adult minimum wage.
Around 222,900 workers in New Zealand who are currently paid between the current and new minimum wage rates will receive a pay increase, and the government will review the minimum wage rate again later this year.
Important Tax Dates
Please note the following important upcoming tax dates:
20/03/2023 – February 2023 PAYE
31/03/2023 – Final date to file 2022 Income Tax Returns
07/04/2023 – 2022 Terminal Tax
20/04/2023 – March 2023 PAYE
07/05/2023 – 3rd 2023 Provisional Tax Instalment
07/05/2023 – March 2023 GST
Reminders for 31 March 2023 year end:
All businesses that hold inventory on hand should complete a year end stocktake for the end of Financial Year 31 March 2023.
Ensure all outstanding bills are entered into Xero/accounting system.
Ensure all client invoicing is up to date and review any bad debts that need written off.
Note any customer deposits/work in progress that will need to be adjusted for.
If you have any questions regarding the end of financial year, please contact your accountant.
Updates to rates for UOMI and FBT on low-interest loans
IRD have updated the rates of use of money interest and calculating fringe benefit tax on employer-provided, low-interest loans.
Effective from 17 January 2023, the new underpayment rate for use of money interest is 9.21%, and the new overpayment rate is 2.31%.
The new prescribed rate of 6.71% for calculating fringe benefit tax on employer-provided loans will apply from the beginning of the quarter starting from 1 January 2023.
Due to Cyclone Gabrielle IRD will remit use of money interest (UOMI) charges on late payment of tax for customers affected in the following regions; Northland, Auckland, Waikato, Bay of Plenty, Hawke’s Bay and Tararua. The remission of UOMI will apply to late payments of tax until 30 June 2023.