New top tier tax rate changes – do you need a business structure review?

Posted on 14 December 2020 by Annè Lensink

3 minutes to read

The Government passed the Taxation (Income Tax Rate and Other Amendments) Bill on 3rd December 2020. Among other changes, the top tier personal income tax rate changes from 33% to 39% effective from the 2022 income tax year. Learn more about the changes and if you need to review your business before the changes come into effect, here are the main points:

A new top personal income tax rate of 39% has been introduced, effective from the beginning of the 2022 income tax year.
The new marginal tax rate of 39% will apply to all employment income over $180,000 per year, including bonuses, back pay, redundancy and retirement payments.
There are also changes to fringe benefit tax, employer’s superannuation contribution tax and retirement contribution savings tax, residential land withholding tax and resident withholding tax.

Business Structure Reviews

It’s important to review your business structure ahead of the changes. The Villa team will be reviewing our clients with earnings above $180,000 per year and also clients with retained earnings in their company.

We can meet with you to provide appropriate recommendations on tax structures ahead of the changes coming into effect. If this is you, please get in touch with the Villa team, as we need to act before 31 March 2021.

Set An Appointment

Please contact Annè directly via email or phone the Villa office:

E: Anne@villaca.co.nz

P: 09 4340 771

Lily Grau

“Annè is the only accountant I have come across who would always go out of her way to ensure all our business needs are met. Annè has enabled me to confidently run my accounts through Xero, and is only a phone call away when I need support. Having all my financial information at my fingertips has been key to our business’ success. Annè is a key member of my team and I wouldn’t want it any other way.”
— Lily Grau, Amici Limited

Kyle & Jo Kake

“Running a small business has a lot of challenges and since meeting Annè we have been able to manage our business more efficiently with one-on-one training using Workflow Max and Xero Accounting software. Annè is there every step of the way providing guidance and advice when needed. She is genuinely interested in the success of our business and her ongoing support has been invaluable. We would not hesitate to recommend her to anyone!”
— Kyle & Jo Kake, Mason Street Architectural Drafting Ltd

Helen & Glenn Fulton

“Anne challenges you to think outside the box, to grow your business, understand the figures. Seeing Anne really gives you that boost of confidence and motivation to keep going especially in times when you feel it’s a struggle. We love the format of her sessions, the goal setting and 90 day action plans and it is great to have someone outside of your business to be accountable to.”
— Helen & Glenn Fulton, GoFox Electrical Whangarei

Ben Morgan

“The quality of service I receive from Annè at Villa is second to none. She is so personable and professional and has made dealing with my accounts 100% stress free. Thank you Annè.”
— Ben Morgan, Ben Morgan Osteopathy

Nikki Clarke

“Working with Annè has been an absolute game changer. Not only do we get her accounting expertise but what she offers in regards to business planning, strategy and advice is invaluable. Whatever we throw at her she takes on with confidence and we feel that we can really trust her and are in good hands with our business.”
— Nikki Clarke, Cadenshae Limited

Miranda Harrison

“We love working with Annè. Her personable and professional approach plus her way to really take interest and be part of our team makes her the best accountant we have ever had. Yes she does our accounts- but that's not only half of what she does for us. We find the coaching advice and strategic thinking that Annè does enables us to continue to strive for success and never become complacent. It seems that our goals are her goals- and she puts everything into that.”
— Miranda Harrison, Activ8 NZ Limited