Change, Change & Capital Gains
Coming up to 1 April there are a number of changes that are occurring particularly in the employment space .. so here is the list –
1. PAYE – The ACC component of PAYE is changing so if you have employees on automatic payments then you will need to recalculate their pays.
To do this use the IRD PAYE calculator.
2. Kiwisaver – there is 2 new rates available to employees now being 6% & 10%. The employer contribution remains at 3%.
3. Minimum Wage increase – the minimum wage will increase from $15.50 to $17.70. This may have flow on effects for other employees that were above the minimum wage previously but now get moved to the minimum.
4. Domestic Violence Leave – a new type of leave for employees which allows up to 10 days paid of domestic violence leave. Alot of conditions/compliance around this one so you will need to read up on it. Click here to start the learning.
5. Payday filing – if you are not sorted then you need to get your skates on! Click here to check out our blog post for a starter.
That’s the employment changes .. then for those that use single use plastic bags, click here to check out the ban that is coming, effective 1 July.
Capital Gains
Only a short comment from me on Capital Gains Tax (CGT) as there are a number of hurdles and hoops that the Government needs to go over and through to get a workable solution. Currently it is only a Working Group proposal and we await the Government’s response which is expected in April. That is a starter the we will have submissions, draft legislation, further submissions, an election somewhere in there and then it needs to be passed into law.
The one thing is that it will only be effective from the date that CGT is introduced. Before that date there will be the ability to revalue assets to establish a starting value.
Remember we already have effectively a CGT on certain transactions particularly the bright-line test for property transactions. Personally I don’t think a CGT to the extent that is proposed will be implemented but rather a “watered down” version targeting certain assets particularly residential property. But hey, we have a government that the majority of NZ voters didn’t vote for, proving that anything can happen! Be sure, no need to panic or make rash decisions at this point.