Big changes to the tax sys­tem

Waipa Post - - News -

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.

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