On Wednesday 2 December, the Government introduced a new tax bill to Parliament under urgency, which proposes a 39% tax rate on individual income over $180,000.
Given Labour’s majority in Parliament, the bill has now been passed and will be effective for the start of the 2022 income tax year.
This new rate could form part of New Zealand’s progressive tax system for years to come as the Government navigates an economic recovery, commitments to public services, and budgets to service the forecast growth in Government debt.
In this Tax Tips Alert, we discuss the implications of the new rate and what this means for you and your business.
