There we have it—New Zealand’s political scene just got a serious makeover! The National Party has clinched a deal, introducing a brand-new three-party squad to tackle everything from Indigenous rights to tax tweaks and bank biz. Yep, you guessed it—the three wise men are on the case, fingers crossed for some solid decisions, right?
Rest assured, as the tax changes come into play, we’ll keep you updated every step of the way.
| Old | New | ||
|---|---|---|---|
| Income Tax | Income Tax | ||
| Current rates | Current brackets |
National’s brackets | National’s rates |
| Earnings up to $14,000 | 10.5% | Earnings up to $15,600 | 10.5% |
| From $14k to $48k | 17.5% | From $15.6k to $53.5k | 17.5% |
| From $48k to $70k | 30% | From $53.5k to $78.1k | 30% |
| From $70k to $180k | 33% | From $78.1k to $180k | 33% |
| $180k+ | 39% | $180k+ | 39% |
| Tenancy Law | Tenancy Law | ||
| Landlords are not allowed to require an extra bond payment from tenants with pets. |
Allow landlords to require an extra bond payment from tenants with pets, encouraging landlords to allow pets |
||
| Landlords can only end a periodic tenancy if they have a good reason for it. |
Allow landlords to issue a 90 day notice to a tenant to end a periodic tenancy without providing a reason or applying to the Tenancy Tribunal.
|
||
| Return tenants’ notice period is currently at 28 days and landlords currently at 90 if they want to move or sell |
Return tenants’ notice period to 21 days and landlords’ to 42 if the tenant wished to move or landlord wished to sell a property. |
||
| Phase Interest Deductibility | Restore Interest Deductibility | ||
| Mortgage interest deductibility is phased for rental properties with a: 50% deduction in 2023/24 25% in 2024/25 0% in 2025/26 and beyond. |
Restore and increase the speed at which mortgage interest deductibility is restored for rental properties with a: 60% deduction in 2023/24 80% in 2024/25 100% in 2025/26.
|
||
| In 2021, the bright-line test was extended from 5 to 10 years. |
Take the bright-line test back to 2 years |
||
| 90 day trial with requirements | Expand 90-day trials to apply to all businesses |
||
| Small employers can trial new hires for 90 days. Prior employees can’t be on a trial. Visa-specific hires must consider immigration rules on trials. |
The Fair Pay Agreement regime, which supports collective bargaining, will be gone by Christmas. |