Big changes to the tax system
Inland Revenue has begun a public information campaign to tell Kiwis what the biggest changes to the tax system in a generation will mean for them.
Almost every household and business will be affected. Inland Revenue commissioner Naomi Ferguson says that, subject to legislation, the April 2019 tax year will be different.
“Automated tax assessments will see around 1.67 million New Zealanders get a tax refund paid straight into their bank account,” she said. “About 720,000 of those people will not have had any recent contact with IR, some not for 20 years or more.
“About 530,000 will be beneficiaries and people who earn less than the minimum wage and have never applied for a tax refund before.” More than 330,000 Working for Families customers would benefit with IR getting their wage and salary information immediately, so customers are always getting the right amount.
“IR will get your payroll information on your paydays instead of employers having to do a separate report to us once a month.” Dividend and interest payments would be reported to IR more frequently by banks and others, so that taxpayers don’t have to. Most people would pay and receive the right amounts during the year without having to do anything.