Business and Tax Updates September 2023: IBBZ Accounting

Summary:

Next month is election year, by mid-October a newly elected govt will take charge. In this issue we will try to cover the tax policies of different parties for small business owners. We want to express our sincere gratitude for entrusting IBBZ Accounting with your financial needs. It is our privilege to collaborate with you, offering personalized accounting solutions that drive your business forward. Without further ado, let us delve into the highlights of september newsletter.

From 1 October 2015, the Parliament introduced some changes to the property rules called as Bright-line test. The purpose of the test is to reduce the number of foreign speculators on NZ property and thus maintain positive housing prices of big cities in New Zealand. This rule only applies to residential properties bought on or after 1 October 2015. The idea behind the test is that taxpayer has to pay tax on the gain when you selling your property (with some exceptions). By taxing on the gain, it somewhat discourages speculators for housings as the profit is not as good as before.