TAX RATE CHANGES 2010
GST RATE CHANGES
The GST rate is increasing from 12.5% to 15% from 1 October 2010.
GST Fraction Example
GST exclusive Price $1,000
GST inclusive Price $1,150
GST component of the price = 3/23rds of the purchase price
$1,150 divided by 23 = $50
$50 times 3 = $150 (GST component)
Alternatively $1,150 divided by 23 = $50
$50 times 20 = $1,000 (GST exclusive amount)
INDIVIDUAL INCOME TAX RATE CHANGES
The current tax rates effective to 30 September 2010 are:
Income Range
|
Tax rate |
| $0 - $14,000 |
12.5% |
| $14,001 - $48,000 |
21% |
| $48,001 - $70,000 |
33% |
| $70,000 and over |
38% |
The new tax rates effective from 1 October 2010 are:
Income Range
|
Tax rate |
| $0 - $14,000 |
10.5% |
| $14,001 - $48,000 |
17.5% |
| $48,001 - $70,000 |
30% |
| $70,000 and over |
33% |
Secondary tax code rates are also changing in line with the new tax rates:
Total income
|
Tax code |
Rate |
| $0 - $14,000 |
SB |
10.5% |
| $14,001 - $48,000 |
S |
17.5% |
| $48,001 - $70,000 |
SH |
30% |
| $70,000 and over |
ST |
33% |
RWT RATE CHANGES
Individuals
| |
RWT rate |
Income Range
|
1 April to 30 September 2010 |
1 October onwards |
| $0 - $14,000 |
12.5% |
10.5% |
| $14,001 - $48,000 |
21% |
17.5% |
| $48,001 - $70,000 |
33% |
30% |
| $70,000 and over |
38% |
33% |
| If IRD number not provided |
38% |
33% |
| Default rate new a./c opened after 31 March 2010 |
38% |
33% |
| Default rate in all other cases |
21% |
17.5% |
Companies
| |
RWT rate |
Criteria
|
1 April to 30 September 2010 |
1 October 2010 to 31 March 2011 |
1 April 2011 onwards |
| No IRD number |
38% |
33% |
33% |
| Default rate |
33% |
33% |
28% |
| Elected rate |
33% |
33% |
28% |
| Elected rate |
38% |
33% |
33% |
MULTI RATE (UNLISTED) PIE RATE CHANGES FOR INDIVIDUAL INVESTORS
The tax rates for portfolio investment entities (PIEs) that pay tax on the basis of investors' marginal tax rates will be reduced. This will align with the new personal income tax rates from 1 October 2010 and will be capped at a maximum of 28%.
Total income
|
Taxable + PIE income |
PIE tax rate |
| $0 - $14,000 |
$0 - $48,000 |
10.5% |
| $0 - $14,000 |
$48,001 - $70,000 |
17.5% |
| $14,001 - $48,000 |
$0 - $70,000 |
17.5% |
| $48,001 and over |
Any |
28% |
| Any |
$70,001 and over |
28% |
FRINGE BENEFIT TAX CHANGES (FBT)
Currently you have the option of applying the alternate rate or using a flat rate of 61%.
From 1 October 2010 the flat rate changes from 61% to 49.25%
The alternate fringe benefit rates for the year ending 31 March 2011 have changed in line with the composite tax rates. The following rates will apply:
Income Range
|
Tax rate |
| $0 - $12,390 |
12.99% |
| $12,391 - $39,845 |
23.84% |
| $39,846 - $54,915 |
45.99% |
| $54,916 upwards |
55.04% |
The alternate FBT rates will change again for the year ending 31 March 2012
Income Range
|
Tax rate |
| $0 - $12,530 |
11.73% |
| $12,531 - $40,580 |
21.21% |
| $40,581 - $55,980 |
42.86% |
| $55,981 upwards |
49.25% |
|
