2024 New Zealand Tax Changes for Small Businesses
Navigating the 2024 Tax Landscape: What Small Businesses Need to Know
As we step into the new year, Aotearoa brings forth some significant changes in the tax landscape that directly impact our Kiwi businesses. Teambookkeeping is here to guide you through these shifts, ensuring your financial sails catch the right wind. Let’s dive into the key updates:
1. 90-Day Trial Periods Extended to All Employers
In a noteworthy move, the 90-day trial periods are no longer exclusive to smaller businesses. Now, all employers, regardless of size, can utilize these trial periods. The extension aims to instill confidence in employers when bringing new team members on board.
What You Need to Do:
- Agree to the trial period in writing before the employee starts work.
- Ensure compliance with immigration requirements for specific work visas.
Learn More — Employment New Zealand
2. Repeal of Fair Pay Agreements Legislation
The Fair Pay Agreements (FPA) Act bid adieu. While this legislation is no more, employers, unions, and employees are encouraged to collaborate on determining suitable employment terms.
What You Need to Do:
- Dispose of any personal information related to Fair Pay Agreement activities in line with privacy laws.
Explore More — Ministry of Business, Innovation and Employment
3. Potential Changes to Tax From June 2024
While not in effect until June 2024, the new government has unveiled its tax plan, addressing inflation and the cost-of-living crisis. Proposed changes include income tax threshold adjustments, updates to tax credits, and more. Stay vigilant for updates as we keep you informed on any major changes, including those from IR.
- Adjustments to income tax thresholds are on the horizon.
- Eligibility for the Independent Earner Tax Credit (IETC) is set to expand.
- The FamilyBoost childcare tax credit is in line for an increase.
- Working for Families tax credits will see a boost.
- Mortgage interest deductibility is making a return for rental properties.
- Fees will no longer apply to higher CO2-emitting vehicles.
- There’s a reversal in the app tax policy.
- The foreign buyers tax is up for repeal.
What You Need to Do:
- Keep an eye out for updates and stay informed.
Stay ahead of the game with 2024 New Zealand tax changes for small businesses.
We’re here to navigate these changes with you, ensuring your financial journey is smooth sailing. If you have questions or need personalized guidance, reach out using our contact page.
Want more financial advice for your small business? Here’s another helpful blog on business bookkeeping – https://www.teambookkeeping.co.nz/depreciation/
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