A look back at tax and law changes in 2016

The Government has had plenty of changes happen this year; updates to road mileage, employment law, health & safety and tax changes...  So we have picked a few topics to breeze over.

Road user mileage

The Commissioner reviewed the current road user mileage rate for business use of a motor vehicle to 72¢ per Km for both petrol and diesel fuel vehicles for the 2016 income year.

Residency

A number of New Zealander's work overseas for short periods of time.  Some returning on & off or in other words "Fly-in fly-out" (FIFO).  Many New Zealander's are working in the mines or on oil rigs in Australia or the Pacific.  You could be employed as an employee, contractor or company. 

So that means individuals filing a tax return in one country depending on the outcome of a residency test could also be required to file in the other.  It may mean filing a return in New Zealand for the March year end and one in Australia for the June year end, the residency test will determine which country gets to tax your worldwide income.  It isn't just this clean cut and can be a real mine field.

ACC Levy changes

On 1^st April 2016 ACC levies went down and the residual portion of your levy will no longer be collected.  Good news for most businesses as their levies fell but some business levies increased.  Depending on you're what your business industry is your ACC levies could rise.  There are levy risk groups and ACC uses your business industry classification to determine what your individual unit & levy rates will be.

If you would like us to check and ensure you are in the correct industry classification, please give us a call.

Paid Parental Leave

The Government announced changes to parental leave that came into effect on 1^st April 2016. 

Staff who have worked for their employer for six months or more and their child is born, expected to be born or assume primary care of a child under six years of age on or after 1^st April 2016 are entitled to 18 weeks of paid parental leave.  That's two weeks more than the previous 16 weeks. 

If you have queries about rates, tax, ACC, contracts, employees or wages, give us a call 03 578 3386 or you can email us: support@tva.co.nz - we can help with all your needs.