The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Vanessa Williams
Published on

The Finance and Expenditure Committee has presented its report on the proposed Taxation (Annual Rates 2023-2024, Multinational Tax and Remedial Matters) Bill including comment on the Trust Tax changes

The committee has recommended the following changes in relation to Trusts :

  1. If a Trust’s total net income, after deducting expenses and distributions of income to beneficiaries is $10,000 or less the tax rate will remain 33% (note: if the net income in the Trust is over $10,000, the tax rate will be 39% as per the original Bill)
  2. There is a concession for Estates which will be taxed at 33% for the year of death and the subsequent 3 years
  3. Disabled Beneficiary Trusts will also remain on a 33% tax rate
  4. Certain trusts like energy consumer trusts and legacy superannuation funds have also been carved out to remain on 33%.

There will be a second reading of the Bill on 19 March 2024.

We will advise on any further updates as they arise. Please contact Alliott NZ in Auckland to discuss on 09 520 9200.

Topics: deductions estate planning expenditure tax rate trust