Another tax year is just about over.
The tax year runs from 1 April to 31 March and includes all income earned for that period. For your refund to be calculated, all records from your employer(s) need to be with Inland Revenue. This process can takes time and refunds are not released from Inland Revenue (IR) until June - with an exception if you file an IR3 income tax return which can be processed by IR before then.
Here are two considerations that you should evaluate when conducting your tax return:
For now, let's just focus on the first point. In choosing the correct party to calculate and provide you with the funds, you should watch out for companies offering fees exclusive of GST and having hidden charges that eat into your refund. You can ALSO complete the tax return process by yourself through the Inland Revenue website. This can be a tedious and frustrating experience however, we do recommend this if you're confident with this topic as you will not be charged any fees as you will if you go through a third party.
If you wish to complete your own tax return, please click here
Here is a small update to increase your literacy of tax.
The Minister of Revenue has confirmed that legislation to extend the bright-line test is before parliament (2nd reading). This will catch capital gains on properties purchased and sold within 5 years. Once again the main home exclusion applies and there are some other exclusions to the rule e.g. property acquired through an inheritance.
Please consider the impact of this should you be considering purchasing a rental or second property.
The interest rate has reduced to 4.3% and the annual repayment threshold has increased to $19,448. Reminder to overseas borrowers that the 2nd repayment installment is due 31 March 2018.
Millions of dollars remain unclaimed for school donations, Inland Revenue will refund one third (33%) of donations to the schools general fund. It doesn’t seem much but it is worth getting a refund for the available four years, they do add up. The 2016 average school donation was $187, so that would be a refund of $62 just for that year.
Your school will be able to provide you copies of receipts should you need copies. You can also include any other charitable donations over $5 that you have made on the same application. If you are unsure we are always here to help.
The government is introducing a Best Start payment of $3,120 per year ($60 per week) per child to help families with the costs in a child’s early years. This replaces the parental tax credit and will commence 1 July 2018. There is the provision for this to be extended into the 2nd and 3rd years for low and middle income earners.