The Government has created a new personal income tax rate of 39% that applies to all income

in excess of $180,000 from 1 April 2021.

There are also new tax rates for tax types such as RWT and secondary income tax to ensure that the rate is consistently applied across all tax types.

If you are affected by this new tax rate change AND pay provisional tax, it’s important to be aware that your provisional tax payments will need to be adjusted to take into account this 6% increase to the tax rate.

If you earn or expect to earn personal income of more than $180,000 there are actions that you can take before 31 March 2021 to mitigate the impact of this change moving forward.

Contact your local SBA.