Income tax ñ Tax rates and tables 2004

Personal tax rates 2003-04

Income Range

Basic rate

Effective Rate*

$0 - $9.500

19.5%

15.0%

$9,501 - $38,000

19.5%

21.0%

$38,001 - $60,000

33.0%

33.0%

Over $60,000

39.0%

39.0%

* Takes into account the low income earner rates

Corporates and trusts

Corporate tax rate

Resident companies

33%

Non-resident companies

33%

Trusts tax rate

Trustee income

33%

Payment to minor beneficiaries

33%

Taxable distributions from non-qualifying trusts

45%

Goods and Services Tax (GST)

The rate is 12.5%. To calculate GST in a GST-inclusive price divide the price by 9.

Withholding payment tax

Payment types

Tax rates per $1

Builders

0.20

Caretakers

0.15

Agricultural/horticultural/forestry workers

0.15

Cleaners and gardeners

0.20

Commission agents

0.20

Demonstrators

0.25

Directors

0.33

Honoraria

0.33

Freelance media reporters

0.25

Photographers

0.20

Non-resident contractors

0.15

Non-resident entertainers

0.20

 

Tax return due dates

An individual must file their income tax return for the year ended 31 March 2004 by 7 July 2004. An extension may apply for those with tax agents. An extension of time (EOT) agreement provides for an extension until 31 March 2005.

Duties

Gift duty

Value of gift

Rate of gift duty

Not exceeding $27,000

Nil

$27,001 - $36,000

5% on excess over $27,000

$36,011 - $54,000

$450 plus 10% of excess over $36,000

$54,000 - $72,000

$2,250 plus 20% of excess over $54,000

Over $72,000

$5,850 plus 25% of excess over $72,000

Estate duty

No estate duty applies.

Student loans

Student loans - threshold

Income years

Repayment threshold $

2004-2005

$16,172

2003-2004

$15,964

2002-2003

$15,496

Student loans ñ interest rate

Income years

Base %

Adjustment

Total

2004-2005

5.5%

1.5%

7.0%

2003-2004

4.2%

2.8%

7.0%

2002-2003

5.1%

1.9%

7.0%

Resident withholding tax

Activity

Tax rate

On interest if the payer has received an election from the recipient of the interest to apply this rate of RWT and has provided their IRD number to the payer.

19.5%

On interest if the payer has not received an election from the recipient of the interest to apply a particular rate of RWT but the recipient has provided their IRD number to the payer.

19.5%

On interest if the payer has received an election from the recipient of the interest to apply this rate of RWT and has provided their IRD number to the payer.

33%

On interest if the payer has received an election from the recipient of the interest to apply this rate of RWT and has provided their IRD number to the payer.

39%

No-declaration rate

39%

Non-resident withholding tax

Income

NRWT rate

Dividends to the extent that the dividend is not imputed (except investment society dividends which are treated as interest)

30%

Investment society dividends

15%

Cash dividends to the extent that the dividend is fully imputed

15%

Non-cash dividends to the extent that the dividend is fully imputed

Nil

Interest

15% or nil for an approved issuer levy regime payment

Royalties

15%

 

Fringe Benefit Tax

Fringe Benefit Tax (FBT) is imposed at multiple rates on the taxable value of fringe benefits given to an employee. Determining the value depends on the nature of the benefit.

FBT payment dates

Generally, FBT is collected each quarter.
A quarter is prescribed as the 3 months ending on the last day of each June (Q1), September (Q2), December (Q3), and March (Q4).

Quarter 1

Return due 20 July

Quarter 2

Return due 20 October

Quarter 3

Return due 20 January

Quarter 4

Final return due 31 May

 

FBT calculation

Quarters 1-3

64% or 49%. Choice of two rates for quarters one to three and in future years.

Quarter 4

Multi-rate calculations effective for quarterly and annual return filers. Options include

pay final quarter at 64% (if this rate has been used in the previous three quarters) or

use the multi-rate calculations. This is mandatory if 49% has been used in any of the previous three quarters.

Common fringe benefit items

The following items are fringe benefits when provided to an employee:

Entertainment tax

Common entertainment expense items

Deductible

  

Activity

50%

100%

Subject to FBT

Taking client (existing or potential) out to lunch or dinner

50%

    

Meals with clients while you are out of town on business

50%

    

Hire of a launch to entertain clients

50%

    

Parties and other social functions (whether at the office or elsewhere), eg Friday night drinks, staff Christmas parties, or reception for existing or potential customers.

50%

    

Overseas business travel including meals with clients

 

100%

  

Dinner for a salesperson while out of town (no client present)

  

100%

  

Conferences, educational courses, trade displays

  

100%

  

Morning and afternoon teas and light meals provided during working hours

  

100%

  

Non-taxable meal allowances paid to employees working overtime

  

100%

  

Samples of food and beverages for advertising purposes

  

100%

  

Golf club subscription for a shareholder/employee paid by the company

    

FBT

Gym membership for a staff member paid by the employer

   

FBT

 

Motor vehicle reimbursement allowances

Standard rate for motor cars

1-3000km

62 cents per km

Over 3000km

19 cents per km

Flat rate

28 cents per km

Special rate for motor vehicles

cc rating

Fixed costs (total)

Running costs (cents per km)

1 - 1,300 cc

$4,214

16.7

1,301 - 1,600 cc

$4,507

17.2

1,601 - 2,000cc

$5,475

19.1

Over 2,000 cc

$6,308

22.2

 

Disclaimer

Important: This is not advice. Clients should not act solely on the basis of the material contained in this fact sheet. Items herein are general comments only and do not constitute or convey advice per se. Changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. We believe the contents to be true and accurate as at the date of writing but can give no assurances or warranty regarding the accuracy, currency or applicability of any of the contents. This fact sheet is made available to our clients as a helpful guide for their private information. Therefore it should be regarded as confidential and should not be made available to any person without our prior approval.

Copyright: No unauthorised copying permitted

HF147

Last updated: August 2004