TAX & BUSINESS NEWSLETTER APRIL 2026

This month’s issue highlights practical developments relevant to New Zealand businesses and taxpayers. We cover the latest Reserve Bank and bank-economist signals, Inland Revenue auto-assessments and refund season, moving-to-Australia tax issues, payroll and privacy reminders, and the growing commercial focus on India-related trade and investment opportunities. We have also included crucial updates on the recent US tariff refunds, Inland Revenue’s cryptoasset crackdown, and key tax law changes that recently came into effect.

BUSINESS AND ECONOMIC UPDATE

The Reserve Bank held the Official Cash Rate (OCR) unchanged at 2.25% at its April 2026 meeting — a decision widely described as a "hawkish hold" — signalling that while rates are on hold for now, the next move is likely to be upward rather than downward. Annual CPI inflation rose to 3.1% in the March quarter, above the RBNZ's 1–3% target band, with higher petrol prices the largest driver.

Westpac now forecasts inflation peaking at 4.5% by mid-year, driven largely by the oil shock. The next OCR decision is due on 27 May 2026, with the Reserve Bank's Monetary Policy Statement and Budget 2026 both landing on 28 May — making this a significant week for the economic outlook.

The major bank economists have materially shifted their rate forecasts. ANZ now tips three consecutive OCR hikes — in July, September and October — which would take the OCR back up to 3.0%. ASB has also brought forward its rate-hike forecasts and expects a peak of 3.25% by year end. Infometrics is forecasting three hikes this year. Westpac has already lifted some fixed home loan rates, with its one-year rate rising to 5.29% from April. The common message is that the period of falling interest rates is over, and borrowers should plan accordingly.

Two major credit rating agencies have now moved New Zealand's outlook to negative. Fitch acted first in March, followed by Moody's on 22 April — which affirmed the Aaa rating but cited rising debt, persistent inflation and the energy shock as factors making fiscal consolidation harder to achieve. Government debt is now tipped to hit 53.9% of GDP by June. The Moody's downgrade also flowed through to Auckland Council, which had its Aa2 outlook changed to negative on the same basis. For businesses, the signal is clear: the era of cheap government borrowing creating easy economic conditions is fading, reinforcing the need for conservative cash-flow planning and careful debt management.

A significant new development since earlier in the year is the impact of the Middle East conflict and the resulting oil shock. Brent crude rose from around US$70 per barrel to peaks above US$119 following Iran's closure of the Strait of Hormuz, triggering the biggest monthly fuel price increase recorded by Stats NZ — diesel up approximately 43% in one month, petrol up over 18%. Westpac business surveys report widespread disruption: freight surcharges, supply chain stress, softer consumer demand and reduced business confidence.

Households are spending an estimated extra $55 per week on fuel. These pressures are expected to persist for 6–9 months even if the conflict eases, as the impact works through the supply chain.

Action: With rate hikes now expected from July, review any floating or short-term fixed borrowing and consider locking into longer-term rates where appropriate. Keep budgets and cash-flow assumptions under close review and avoid building business plans around further interest-rate easing. The combination of higher fuel costs, rising borrowing costs and Budget 2026 spending constraints makes conservative financial planning especially important this year.

TAX SEASON AND AUTO-ASSESSMENTS

Inland Revenue will begin issuing many automatic end-of-year income tax assessments from the last weekend in May, with processing continuing through June and July. This mainly affects individuals whose income consists only of salary, wages, or other income already taxed at source. For straightforward affairs, the process is now largely automated.

That said, clients should not assume the automatic result is always complete. Additional income streams such as rental income, self-employment income, side-hustle income, or cryptocurrency gains may mean a full return is still required. A refund can also be applied against existing Inland Revenue debt rather than paid out directly.

Action required: Check myIR details, ensure bank account information is current, and review whether any untaxed or partly taxed income needs to be separately returned.

SCAM ALERT DURING TAX SEASON

Tax refund season is also scam season. Inland Revenue has again warned that it will direct customers to log in through myIR on the official ird.govt.nz website and will not ask for credit card or debit card details by email or text. Furthermore, Inland Revenue will not put the dollar amount of a refund in an email or text message. Refund notifications that contain urgent payment demands, suspicious links, or requests for banking credentials should be treated with caution.

Action: Remind staff and family members to access myIR directly rather than through links in unsolicited messages.

INLAND REVENUE CRYPTOASSET CRACKDOWN

Inland Revenue has recently intensified its focus on cryptocurrency investors, sending out warning letters in late April 2026. The department is utilizing international data-sharing agreements and exchange data to track transactions, warning investors that they are “not invisible.” Cryptoassets are treated as property for tax purposes, meaning profits from selling, trading, or exchanging them are taxable.

Action required: If you have traded or exchanged cryptoassets, ensure your gains are correctly declared as income. Contact us if you need assistance calculating your crypto tax obligations.

US TARIFF REFUNDS FOR NZ EXPORTERS

New Zealand exporters may be eligible for a share of up to $1 billion in tariff refunds following a recent United States Supreme Court ruling. The court reversed the Liberation Day tariffs imposed under the International Emergency Economic Powers Act (IEEPA), declaring them unlawful. The refunds relate to tariffs paid between April 2025 and February 2026.

While this presents a significant opportunity for exporters of agricultural, agri-food, and manufactured goods, the refund process is not automatic. Registered exporters with a US subsidiary acting as the importer may apply directly, but the process is more complex for those who are not the importer of record.

Action: If you export to the US, review your tariff payments between April 2025 and February 2026. Contact us to discuss how we can assist in navigating the refund process.

RECENT TAX LAW CHANGES

The Taxation (Annual Rates for 2025-26) Act 2026 has introduced several important changes that businesses and individuals should be aware of:

• KiwiSaver Changes: From 1 April 2026, the default contribution rate for employers and employees increased to 3.5%. Additionally, 16 and 17-year-old employees now qualify for employer contributions.

• Investment Boost: Businesses can claim a 20% accelerated depreciation deduction for the costs of new business assets, such as commercial buildings, machinery, and technology.

• Trust Disclosure Rules: The onerous trust disclosure rules have been repealed, effective from the 2026-27 income year.

• Residential Solar Exemption: Income earned from selling excess residential solar power into the grid is exempt from income tax from 1 April 2026.

• Fringe Benefit Tax (FBT): Gift cards remain subject to FBT, though employers can opt to pay PAYE. There is also new flexibility to choose between FBT and PAYE for certain reimbursed expenses.

Action required: Ensure your payroll systems are updated for the new KiwiSaver rates and minimum wage increases ($23.95 per hour for adults from 1 April 2026). Review your asset purchases to take advantage of the Investment Boost.

MOVING TO AUSTRALIA ‒ THINGS TO BE AWARE OF

For New Zealanders moving to Australia, tax planning should start before departure rather than after arrival. A key issue is Australia’s temporary resident regime. New Zealand citizens entering Australia on a Special Category Visa can often qualify for temporary resident treatment, which may mean most foreign-sourced income and capital gains on non-Australian assets are outside the Australian tax net while that status continues.

This can be highly relevant where a person keeps New Zealand rental property, bank accounts, or share investments after moving. However, the position is not permanent and can be lost if circumstances change, including where a person moves onto another visa, becomes an Australian citizen, or has a spouse or partner who is treated as an Australian resident for social security purposes. Timing can therefore make a major difference to the tax outcome on later asset sales or restructures.

Clients also need to keep in mind that moving to Australia does not automatically end New Zealand tax residence. Dual-residence issues can still arise where a person retains a permanent place of abode, business interests, trusts, or close personal ties in New Zealand. Unpaid New Zealand tax debt should also never be ignored, as enforceable IRD debt can in some cases be pursued in Australia through the ATO collection framework.

Action required: Before relocating, review both New Zealand and Australian tax residence, asset ownership, dispute deadlines, and any outstanding tax liabilities so the move is structured properly from the outset.

AUSTRALIAN PROPERTY TAX CHANGES

Australia is moving to tighten several major property-related tax concessions, driven by an "intergenerational fairness" narrative and mounting political pressure over housing affordability. The Albanese government has signaled that the May 2026 budget will lean heavily on generational equity themes, with changes targeting concessions that disproportionately benefit older, asset-rich households.

The key concessions under review include the capital gains tax (CGT) discount on investment properties and negative gearing — both closely linked to property investment and cited as drivers of inflated property values and higher rents. Treasurer Jim Chalmers has foreshadowed reductions to the CGT discount and possible changes to negative gearing settings, though final details are still being worked through. In a concrete early move, the private health insurance subsidy for people aged 65 and over has been abolished on generational-fairness grounds, saving approximately A$3 billion over the budget estimates.

Baby boomers collectively hold a dominant share of Australia's residential property wealth — estimated at well over half of the total housing stock — much of it mortgage-free and including investment properties. Critics caution that while tightening concessions may raise revenue and cool speculative demand modestly, structural issues such as insufficient housing supply and planning constraints mean tax changes alone are unlikely to restore affordability quickly. New Zealand clients with Australian property interests or those considering a trans-Tasman move should monitor these developments closely, as changes to the CGT discount and negative gearing could significantly affect after-tax returns on Australian investment property.

Action: If you hold or are considering Australian property investments, or are planning to relocate to Australia, contact us to discuss how the proposed tax changes may affect your position.

PAYROLL AND PRIVACY CHECK-IN

The April payroll changes remain important in May because this is often when errors first become visible in live payroll processing. Employers should confirm minimum wage updates, the new 3.5% KiwiSaver contribution changes, ACC levy settings, and related pay calculations are all functioning correctly in payroll systems.

Where personal information is collected indirectly, such as through recruitment agencies, referees, credit checks, or other third parties, businesses are now required to notify the affected individual of what was collected and why.

Action required: Review payroll outputs and update privacy notices, HR processes, and third-partyinformation collection practices where necessary.

TRADE AND POLICY WATCH

The New Zealand‒India free trade agreement, signed on 27 April 2026, has become one of the more important commercial developments on the horizon. The agreement cuts or eliminates tariffs on 95% of New Zealand’s exports to India, with over 54% of goods enjoying duty-free access from day one.

What makes this especially relevant for clients is that the opportunity is not limited to direct exporters. Importers, logistics operators, service providers, project businesses, and firms looking to build supply or distribution links with India may all see new openings as tariff settings, customs processes, and market access improve. Bankers, trade advisers, and business groups are already actively encouraging businesses to look at India more seriously, particularly where diversification away from traditional markets is being considered.

For many clients, the practical barrier will not be interest but execution: funding, working capital, trade finance, letters of credit, foreign exchange management, and the credit risk that comes with new counterparties and new jurisdictions. Those issues are manageable, but they need to be planned properly from the beginning rather than after contracts are signed.

Action: If you are considering importing from India, exporting to India, or entering into an India-related investment or trading arrangement, contact us early. We can help you work through funding structures, cash- flow implications, tax and GST treatment, and the practical issues that arise when dealing with banks and trade counterparties.

KEY TAX DATES SNAPSHOT 2026‒2027

Disclaimer

This newsletter is published by Greenlane CA Limited for informational purposes only. The content provided herein is of a general nature and does not constitute professional tax, accounting, legal, or financial advice. While every effort has been made to ensure the accuracy and completeness of the information contained in this newsletter, Greenlane CA Limited makes no representations or warranties, express or implied, as to the accuracy, reliability, completeness, or currency of the information.

Readers should not act or refrain from acting based solely on the information in this newsletter without first seeking professional advice tailored to their specific circumstances. Tax laws and regulations are subject to change, and the application of these laws depends on the particular facts and circumstances of each case.

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For advice specific to your situation, please contact Greenlane CA Limited directly.