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Interest paid on borrowings for tax

Where money is borrowed by an individual just to pay tax, the interest will generally not be tax deductible. However, if the money has been raised to preserve an income-earning asset, the interest is tax deductible. For example, borrowing money to pay tax in order to avoid selling shares that would otherwise have to be sold.

Property transfers

For the IRD to get a complete picture of property transfers, a supplementary order paper has been prepared requiring IRD numbers from all buyers and sellers of property, including when they are selling their own home. This will help IRD to trace those who make a habit of doing up houses and moving on, claiming the gains they make are free of tax.

Attn: Landlords/ladies

From 12 December 2018 tenants can no longer be charged letting fees.

All new tenancy agreements from 1 July 2019 must include a separately signed statement confirming intention to comply with the healthy homes standards. If you own a tenanted property, we suggest you go online and make yourself familiar with all the law changes. If you want to be keep up to date with changes regularly, you could subscribe to Tenancy Services news at www.tenancy.govt.nz.

School donations

The Budget has provided, from the beginning of the 2020 school year, an entitlement of $150 per student per year if the school agrees to stop requesting donations from parents. This funding applies only to decile 1-7 State and State-integrated schools.