Greenlane CA Newsletter September 2025
GLCA Newsletters
Daran Nair
Director | CA, MBA
Tax Newsletter – September 2025
Welcome to our latest tax newsletter!
Greenlane CA is pleased to bring you the most important tax developments affecting New Zealand businesses and individuals. This month has seen significant changes with the introduction of a major new taxation bill and several other key developments that may impact you.
Major Tax Bill Introduced
The government has introduced the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Matters) Bill – the most significant tax legislation this year. Here's what you need to know:
Key Changes Include
New rules for foreign investments – making it easier for migrants and returning Kiwis
Tax breaks for remote workers – attracting “digital nomads” to New Zealand
Employee share scheme improvements – helping businesses retain staff
Simplified GST rules for joint ventures
Solar power tax exemption for residential properties
Foreign Investment Fund (FIF) Relief
Good news for new migrants and returning New Zealanders!
The new Revenue Account Method (RAM) will make foreign investments much more tax-friendly.
What's Changing
30% discount on capital gains before tax is applied
No more tax on unrealised gains – you only pay tax when you actually sell
Effective tax rate of just 27.3% for highest earners (instead of 39%)
Available from 1 April 2025 (retrospective)
Who's Eligible
New migrants who've been non-resident for 5+ years
Returning Kiwis in the same situation
US citizens and green card holders get even better treatment
Our advice: If you have foreign investments and think you might qualify, contact us to discuss how this could save you significant tax.
Digital Nomads Welcome
New Zealand is rolling out the red carpet for remote workers.
The 275-Day Rule
Work remotely in NZ for up to 275 days in 18 months
No New Zealand tax residency triggered
Must be tax resident elsewhere
Can't work for NZ companies or sell to the NZ market
Perfect For
International consultants, freelancers, and remote employees wanting to experience New Zealand.
FamilyBoost Gets a Boost
Great news for families with young children! The government has announced improvements to FamilyBoost.
What's Improving
Income threshold raised from $180,000 to $229,100 household income
Higher payments – up to $1,560 per quarter (from $975)
More generous – 40% of ECE costs covered (up from 25%)
Slower reduction for higher earners
Effective
July–September 2025 quarter (subject to legislation).
Controversial Change – IRD Information-Gathering Powers to Be Repealed
“Blindfolding the IRD?” – as the New Zealand Herald puts it, the government is removing a key tool IRD uses to investigate tax paid by wealthy individuals.
What's Being Removed
Section 17GB of the Tax Administration Act will be repealed
This provision allowed IRD to gather information about high-wealth individuals' tax affairs
It was used in IRD's groundbreaking 2023 research showing wealthy New Zealanders paid a median effective tax rate of just 9.4%
The research covered 311 wealthy individuals and provided unprecedented transparency
The Controversy
Critics argue this will:
“Shield the rich and powerful” from scrutiny
Reduce transparency about tax-system fairness
Make it harder to assess whether the wealthy pay their fair share
Limit future research into tax equity
Government's Position
Framed as “increasing privacy for taxpayers”
Part of broader compliance simplification efforts
Reduces regulatory burden on high-wealth individuals
Why This Matters
The 2023 IRD research revealed that New Zealand's wealthiest individuals often pay lower effective tax rates than middle-income earners. This finding sparked significant public debate about tax fairness and calls for policy changes like capital gains tax.
Our view: While this change may not directly affect most of our clients, it represents a significant shift toward reduced tax transparency. The removal of this research capability may limit public understanding of how equitably our tax system operates in practice.
What It Means for You
High-wealth clients: Less likelihood of detailed IRD scrutiny
General taxpayers: Reduced transparency about overall tax-system fairness
Policy debate: Less data available for future tax-reform discussions
Business Investment Boost Continues
Don't forget about the Investment Boost introduced in Budget 2025:
20% immediate tax deduction on new capital assets
In addition to normal depreciation
Great for equipment, software, and machinery purchases
Act now – this incentive won't last forever
Other Updates
Fee Increases From 1 July 2025
Taxation Review Authority filing fees increased to $552
Various other government fees have also risen
Employee Share Schemes
New tax-deferral options for unlisted companies
Helps small businesses compete for talent
Contact us if you're considering implementing a scheme
What This Means for You
For Individuals
New migrants: Significant FIF tax savings available
Families: Check if you qualify for increased FamilyBoost
Remote workers: New opportunities to work from NZ tax-efficiently
For Businesses
Investment Boost: 20% deduction on new assets
Employee retention: New share-scheme options
Compliance: Some GST simplifications coming
How We Can Help You
These changes create both opportunities and complexities. Our team can help you:
Assess FIF eligibility and potential tax savings
Optimize Investment Boost claims
Review FamilyBoost entitlements
Plan for the new rules affecting your situation
Ensure compliance with changing requirements
Important Dates
1 April 2025: FIF Revenue Account Method effective (retrospective)
1 April 2026: Non-resident visitor rules effective
July–September 2025: Proposed FamilyBoost changes
Ongoing: Investment Boost available now
Our Recommendation
Don't wait! These changes could significantly impact your tax position. Contact us to:
Review your eligibility for new concessions
Plan your investments to maximize benefits
Ensure compliance with new rules
Optimize your tax position for 2025–26
Contact Greenlane CA Limited
Email: info@glca.co.nz
Phone: +64 9 522 5182
Website: www.glca.co.nz
Address: 97 Great South Road, Greenlane, Auckland 1051
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.
Greenlane CA Limited, its directors, employees, and agents accept no responsibility or liability for any loss, damage, cost, or expense, whether direct, indirect, consequential or otherwise, incurred by any person as a result of relying on the information contained in this newsletter, or any errors or omissions therein, howsoever caused.
For advice specific to your situation, please contact Greenlane CA Limited directly.
