Articles

Budget 2011 Summary

May 20th, 2011

This budget summary is provided by Black & White Accounting

In summary, from a tax perspective the 2011 Budget contains:
 
Income Tax

  1. A review of the ability of farmers to flip-flop livestock valuation elections
  2. A review of the apportionment rules for high value assets used for mixed business and private use (e.g. holiday homes may no longer be on the time used basis)
  3. Consideration of adding the value of fringe benefits to taxable income.

 

 Inland Revenue activity

  1. More targeting of tax avoidance
  2. More funds to be allocated to Inland Revenue compliance (read audit) and debt (read debt collection) operations

 
KiwiSaver

  1. Government contribution halved to $520 from 1 July 2011
  2. Employee contributions to increase to 3% from 1 April 2013
  3. Employer contribution to increase to 3% and 1 April 2013
  4. Employer contribution will be taxed from from 1 April 2012 reducing the value of employer contributions.

 
Working for Families

  1. Abatement to kick in earlier from 1 April 2012
  2. Abatement rate to increase from 20 cents to 25 cents from 1 April 2012
  3. Consideration of adding the value of fringe benefits to WFF income

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