Use-of-money interest – the rates on underpaid and overpaid tax rose on 8 May 2015. The interest rate charged on underpaid tax went from 8.40% to 9.21%, and the rate for overpaid tax rose from 1.75% to 2.63%. This movement aims to align the rates with the market interest rates and were last updated in May 2012.
ACC earners levy rate – the ACC earners levy rate for the 31 March 2016 year is 1.45%, the same rate as last year. For employees, the maximum earnings on which the levy is payable is $120,070.
FBT rate for low interest loans – the last notified prescribed rate of interest used to calculate fringe benefit tax on low-interest employment-related loans was 6.70% for the period 1 October 2014 to 31 December 2014. This was up from the previous rate of 6.13%.
Personal marginal tax rates – no changes are proposed to the income tax rates for individuals for the 2016 tax year. The lowest marginal tax rate is 10.5% for taxable income up to $14,000, then 17.5% up to $48,000, 30% to $70,000 and the top rate is 33% on income over $70,000.
Of all the weird and wonderful taxes imposed around the world, it was surprising to find one in our own back yard. New Plymouth sports clubs pay tax on the number of toilets they have. This ‘pan tax’ is imposed by the council and is effectively a sewer charge.
The problem is that sport clubs have limited cash flow and are struggling to meet their liability. According to media reports, the pan tax is often one of the biggest expenses incurred by clubs, and members believe it is not a fair expense. “People already pay pan tax at home. It doesn’t matter if you are going at home or at the club, you’ve already paid for it” said a local club member.
Club calls to flush this tax down the drain have resulted in the Council reviewing the tax in their latest public consultation document.