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Provisional Tax and Student Loan Payments Due 28/8/2015
The Two Year Rule is Applicable Soon
Paid Parental Leave
The first instalment of Provisional Tax and Sudent Loan interim payments are due on 28/8/2015 for taxpayers who have a standard March balance date.
This due date applies to Provisional Taxpayers who use the Standard or Estimation option to calculate their Provisional Tax payments.
TotalAccounting have recently sent out letters to clients who paid Provisional Tax in the year ending 31/3/2015, and are therefore likely to be due to pay Provisional Tax in the year ending 31/3/2016, and who have not as yet provided their year ending 31/3/2015 financial documentation for preparation of Financial Statements and assessessment of Income Tax liability. Please contact us if you are in this category and you have not received these, or if you have any enquiries on the matter.
IRD has now released full details relating to the 2015 Budget proposal to tax gains from the sale of land sold within two years of acquisition and properties purchased after 1 October 2015.
The rule will apply to residential properties (including holiday homes, children's flats, rentals) sold within two years between the date the purchase is registered on the title and a contract of sale is entered into. The rule will not apply to:
Commercial land (including farmland)
The main home of the taxpayer being the house that the taxpayer lives in as their residence (including trust owned family homes)
Inherited residential properties
Residential properties transferred under a relationship property agreement unless the property is subsequently sold within the two year period by the recipient.
If a property subject to the rules is sold at a loss, the loss will be able to offset against taxable gains from land provided that the loss did not arise from a sale to an associated person.
No deduction will be available for costs associated with the property (insurance, rates, insurance etc.) unless they are deductible under the normal deduction rules.
Paid Parental Leave (PPL) is a government-funded entitlement paid to eligible working mothers and adoptive parents when they take parental leave from their job(s) to care for their newborn or adopted child under the age of six. These payments go towards the loss of income that working mothers and adoptive parents experience when they take this parental leave.
How much the PPL payments are
How long you can receive PPL payments for
|If you have a new baby ...||or adopt a child under the age of 6 ...||then you can receive PPL payments for a maximum of ...|
|expected or born on or after 1 April 2015||on or after 1 April 2015||16 weeks.|
|expected or born on or after 1 April 2016||on or after 1 April 2016||18 weeks.|
You can transfer your PPL to your spouse or partner, as long as they also qualify for PPL from their employer or self-employment.
How PPL is paid
IRD will pay PPL payments directly into your bank account each fortnight. The payments will be treated as income, just like your normal salary and wages or self-employed income. PPL payments have tax and student loan deductions taken out (at the rate applies to you). It will not have ACC Earners' Levy deducted from it.
Once IRD have received and processed your application IRD willl send your payment advice letter with:
Parental tax credit and paid parental leave
You may be entitled to receive more money by applying for parental tax credit rather than PPL if:
Find out if you're eligible for PPL and how to apply on the Ministry of Business, Innovation and Employment's website (formerly the Department of Labour) or call them on 0800 20 90 20.
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If we can assist further, please email TotalAccounting as follows: