New Zealand Taxation Principles 2025

New Zealand Taxation 2025: Principles, Cases and Questions has been updated and revised to include all relevant information for the 2024-25 income tax year. Chapters 1 and 17 note the expanded jurisdiction of the Taxation Review Authority, from July 2024 becoming the Taxation and Charities Review Authority, and hearing appeals under the Charities Act 2005. Chapter 5 Income from Property has important revisions on the Bright-line Test for residential land. These provisions have been frequently changed by successive governments trying to limit residential housing inflation. This section of chapter 5 has updated commentary on the bright-line test rules, with useful Inland Revenue examples, including full commentary on start and end dates, income, deductions, losses and exclusions.

Chapter 10, Depreciation contains important updates on the depreciation of buildings. Since 1 April 2011, the rules for depreciating buildings have changed many times and new table 10.1 summarises the general positions and key time periods. From the 2024-25 income year, a zero per cent depreciation rate applies to a building with an estimated useful life of 50 years or more.

Chapters 13 and 14, Calculating Tax and Tax Payments contain all the 2024-25 tax year tables and examples that allow the calculation of income tax liability for individuals and businesses. Following the changes made to taxable income thresholds with effect from 31 July 2024, a series of composite rates apply for the 2025 income year and relevant tables helpfully set these out. Chapter 18 Primary Industries contains the updated livestock values and examples for farm accounting calculations. Chapter 27 Social Assistance contains the new figures for tax credits administered by Inland Revenue, and benefits administered by the Ministry of Social Development.

Chapter 16, Partnerships and Trusts notes the change to the trustee income tax rate from the 2024-25 year, when it increases to 39 per cent; the 33 per cent rate remaining where income does not exceed $10,000 after deductible expenses. Chapter 19, Environmental Taxes has several new sections to the text. Commentary on Energy and Transport Taxation, Pollution and Waste Taxes, Taxation of Natural Resources, and Visitor Taxes are now included.

Chapter 22, Goods and Services Tax notes the requirements for registration of listed services. From 1 April 2024 the supply of listed services made through an electronic marketplace are subject to GST irrespective of the GST registration status of the supplier. Listed services include ride-sharing and ride-hailing, the delivery services for beverages, food, or both and taxable accommodation. A new example for AirBnB accommodation is set out.