Dunedin

1. Income Tax

Income tax in New Zealand is progressive, meaning the rate increases as your income rises. It applies to individuals, businesses, and trusts. Here’s what you need to know:

Tax Rates for Individuals (2023-2024)

• Up to NZD 14,000: 10.5%
• NZD 14,001 to NZD 48,000: 17.5%
• NZD 48,001 to NZD 70,000: 30%
• NZD 70,001 to NZD 180,000: 33%
• Over NZD 180,000: 39%

Key Considerations

• Tax Code: When starting a job, you’ll need to provide your employer with your tax code, which determines how much tax is deducted from your salary. The IRD website has a tool to help you determine the correct tax code.
• Residency for Tax Purposes: If you are in New Zealand for more than 183 days in a 12-month period, you are considered a tax resident and must pay tax on your worldwide income.
• Filing Requirements: Most employees do not need to file a tax return, as taxes are deducted at source through the Pay As You Earn (PAYE) system. However, if you have additional income (e.g., rental income, investments, or overseas income), you may need to file an Individual Income Tax Return (IR3).

Costs

• There is no cost to register for a tax number (IRD number) or to file taxes. However, if you hire a tax agent or accountant, their fees will vary depending on the complexity of your tax situation.

How to File

• Filing is done online through the myIR portal on the IRD website. You can also use this portal to check your tax status, update your details, and claim refunds.

---

2. Property Tax

New Zealand does not have a specific property tax, but there are related costs and taxes for property owners in Dunedin:

Rates (Local Council Tax)

• Property owners in Dunedin are required to pay rates, which are local taxes collected by the Dunedin City Council to fund public services such as water, waste management, and infrastructure.
• Rates are calculated based on the rateable value (RV) of your property, which is determined by the council. The RV is not the same as the market value.
• Rates are typically billed quarterly, and the amount varies depending on the location, size, and use of the property.

Bright-Line Test (Capital Gains Tax on Property)

• While New Zealand does not have a general capital gains tax, the Bright-Line Test applies to residential property sales. If you sell a property within 10 years of purchase (5 years for properties purchased between March 29, 2018, and March 26, 2021), you may need to pay tax on any profit made, unless it is your primary residence.

Costs

• Rates in Dunedin vary but typically range from NZD 2,000 to NZD 4,000 per year for residential properties.
• If you hire a lawyer or conveyancer for property transactions, their fees will also apply.

How to Pay

• Rates can be paid online, via direct debit, or in person at the Dunedin City Council offices.

---

3. Goods and Services Tax (GST)

GST is a 15% tax applied to most goods and services in New Zealand, including those in Dunedin.

Key Points

• GST is included in the price of most goods and services, so you don’t need to calculate it separately as a consumer.
• Businesses earning over NZD 60,000 per year must register for GST and file regular returns.

Filing Requirements for Businesses

• GST returns are filed monthly, bi-monthly, or six-monthly, depending on the size of the business.
• Filing is done through the myIR portal.

Exemptions

• Some goods and services are exempt from GST, such as financial services and residential rent.

---

4. Other Taxes

• Accident Compensation Corporation (ACC) Levy: This is a mandatory levy paid by all employees and self-employed individuals to fund New Zealand’s no-fault accident compensation scheme. It is deducted automatically from your income.
• Customs Duty: If you are importing goods into Dunedin, customs duties and GST may apply.

---

5. Tax Procedures and Filing Requirements

• IRD Number: To work or open a bank account in New Zealand, you need an IRD number. You can apply for one online or through a local PostShop in Dunedin.
• myIR Portal: This is the primary platform for managing your taxes. You can register for an account on the IRD website.
• Tax Year: The tax year in New Zealand runs from April 1 to March 31. Any tax returns are due by July 7 unless you have an extension or use a tax agent.

---

6. Local Services and Resources in Dunedin

Dunedin has several resources to help residents and immigrants with tax-related matters:

Dunedin Inland Revenue Office

• While most IRD services are now online, there are customer service centers in larger cities. Dunedin residents can contact the IRD helpline for assistance or visit the nearest office in Christchurch if in-person help is needed.

Community Law Otago

• Community Law Otago provides free legal advice, including assistance with tax disputes or understanding your tax obligations. They are located in Dunedin and cater to low-income individuals.

Accountants and Tax Agents

• Dunedin has many professional accountants and tax agents who can assist with tax filing, GST returns, and property tax matters. Some well-known firms include:
  • Polson Higgs
  • Findex Dunedin
  • Crowe Australasia

Dunedin City Council

• For property rates and local taxes, the Dunedin City Council website provides detailed information and online payment options. You can also contact their customer service team for assistance.

University of Otago Student Support

• If you are a student at the University of Otago, the student support services can provide guidance on tax matters, especially for international students.

---

7. Tips and Considerations

• Keep Records: Maintain records of your income, expenses, and any tax-related documents for at least seven years, as required by the IRD.
• Tax Refunds: If you overpay tax, you may be eligible for a refund. Use the IRD’s online tools to check.
• Seek Professional Advice: If you have complex tax obligations (e.g., overseas income or multiple properties), consult a tax professional to ensure compliance and optimize your tax position.

---

By understanding these taxation categories and utilizing the local resources available in Dunedin, you can effectively manage your tax obligations and avoid any compliance issues. Let me know if you need further clarification or assistance!