The financial year for personal income tax finished on 31st of March in NZ. Not that’d you’d know it.
There are no payment summaries from employers, no group certificates, and really it just goes by unmentioned and unacknowledged.
Also, filing a personal income tax return is completely optional.
What is this? A ploy by the Inland Revenue Department to boost their tax taking due to people’s apathy and/or ignorance?
I don’t want to turn this into an Aus vs. NZ thing, because it’s not. I know other countries make it optional to file tax returns. But I’ve lived in Australia for my entire life minus two years, so it’s my only point of reference.
In Australia, come the end of the financial year (30th June), you will soon after receive a summary of your payments from each of your employers for the previous financial year. And then you must file a tax return. Everybody. Therefore you find out exactly where you stand, whether you are owed moned from the tax office, of whether you owe money.
It’s a pain, but it’s accurate.
But here in NZ, it seems like you take your chances.
Do I simply not file a tax return, thinking that I probably won’t get anything back? Or do I employ the services of an accountant, hoping to claw back some cash?
(Yes I know you can do the returns yourself, but compared the NZ forms, the Australian Taxation Office ones are a piece of piss.)
In a nutshell, I’m not sure I’m a fan of optional tax returns. They can’t be accurate. Hence the IRD needing to publish an annual list of people who are owed money. At least it’s something, I guess.
Clairzilla said
Not knowing a lot about NZ’s tax system, you may find Outrageous Fortune from season 4 interesting, when Cheryl’s business is being audited. It probably won’t answer any questions about the IRD, but you will get to watch a quality programme.. haha
Grent said
Having been a New Zealand tax payer for 35 years now I have noticed the decline into a very laissez faire attitude. It used to be an onerous chore back in my days as a Varsity student to identify my various sources of income. Back then there were considerably more deductibles and rebates – the forms used to go on for pages, and you had to attach evidence and receipts.
The process today is much more streamlined. Charitable donations are handled separately from the rest of your returns. If only schools would issue a certificate stating the charitable donation component of their every spiraling fee structure.
Lexxie said
Sorry, but I would have to disagree with you wholeheartedly – the Australian taxation system is so antequated and backwards, it’s not funny!! In comparison NZ is far more streamlined, for both employees and employers.
And yes, tax returns are optional for most people, but not eferyone. I think if you have a student loan or own rental property you must do a return every year. And you can go to the IRD website and work out if you are due a refund or not, without even having to identify yourself (i.e. put in your IRD number). So if you are due a refund, you would obviously complete a tax return (and you can do this online). If you’re not due anything, or owe them money, you simply don’t do one!!
Amz said
soooo… if I get a payment FROM the IRD.. and they keep telling me I have to keep my income estiamte accurate or else they will make me pay it back at the end of the year.. that is just an empty threat? cos If I dont have a group certifcate and I dont fill in a tax return, how will they know?
Cam said
It fairly straight forward. NZ’s system is far less complicated than Australias due to the minimal rebates that can be claimed. This means IRD (or so they claim) basically tax you at the correct rate,rendering a tax retuen is pointless.
It sucks from a taxpayer point of view as you dont have the ability to shameless rort the tax system as you do in Aus.
Lexxie said
Cam – you have said it in a nutshell. Unlike Aus, there’s not much room in the NZ tax system to rort more than what is owing to you! Aus is a free-for-all do-them-over-if-you-can-get-away-with-it nightmare.
And Amz – no, it isn’t an empty threat. If you’re an employee and you give your employer the wrong (i.e lesser) tax code, IRD will inform your employer of the correct one. You can then get your employer to change it back to the lesser one, but expect a tax bill at the end of year. With employees, your earnings and tax paid are sent through to to IRD every month by your employer – thats how “they know” you’re paying less tax than you should be.
Lis Sowerbutts said
I am a tax resident in Australia and NZ and run businesses in both – NZ has a much clearer and easier to deal with tax system than Australia. The only reason that every one in Oz needs to file are return are all the crazy rebates – my partner got $750 back cause I didn’t earn enough – what that about??? I spent an hour in the ATO the other day talking to people trying to figure out what needs to be done for the ATO – the same informaton I found online on the NZ IRD site in less than 5 minutes – I had to go thru 3 levels of ATO employees to find out the answer to what to me was a pretty basic question
maxine said
Personally, Im a fan of the Optional Tax Returns..not only it’s convenient, but you can get everything done Online simple as that..
Here in NZ I take care of the Tax side of things for my Dad’s Businesses, whereas his Businesses in Australia are taken care of by an Accountant, only because we find that the Tax system there can be very frustrating and time consuming…
Marita said
I agree with Cam in that the Kiwi system is easy in that if don’t need to put in a tax return at all if you lodge your correct income tax rate based on your expected annual income with your employer/s and your banks (for any interest earned). However I disagree with everyone (seems to be mainly Kiwi’s posting) that the OZ system (which I always completed fairly easily, and can also be done online now) is just a rort. My husband is an academic and yet he can’t validly claim rebates for his computer depreciation or academic books, and I work from home, unsupported by by workplace, and can’t claim a dime either (though work pay for toner, yippee). We also can’t get salary sacrifice if we do buy something like a computer for work. The only rebates allowable are donations, and a childcare rebate which is capped at $330 (for a $990 spend) which has not increased for many years.
And of course there are no baby bonuses, $900 stimulants, new home-owner cheques (ok, OZ has stamp duty), etc. Add all that to the woeful disparity in salaries between the two countries which contribute to the mostly one-way traffic west. Interestingly John Key banged on about the salary disparity issue for years when in opposition but hasn’t mentioned it since in power…
Hmm, this touched a nerve.
Grent said
We Kiwis have the much vaunted Roger Douglas to thank for the simplification of our tax system. Douglas made some of the most sweeping changes imaginable to tax. It hurt when these changes were first implemented e.f loss of tax rebate on superannuation contributions; but overall the change has been for the betterment of everyone.
Then that meddler Cullen got his pudgy little fingers on the tax system….
Brett said
No,no and no..
The NZ taxation dept has just thrown its hands in the air and said stuff it…
Half the country can’t read and the other half do corrupt underhand cash payments…
Why do you think NZ is broke and has been for the past 50 years..
figjam said
hahaha Brett…yep couldnt agree with you more,also bankers caused this worldwide recession and who did NZ elect to be the next PM? An ex banker…..lmao
pam said
brett, of course we can read! why do you think Kiwis take your jobs? aahahahaha lazy ockers -
figjam you’re just clueless
figjam said
spam i mean pam hates me so much she loves me…hehe
pam said
lol hate is a strong word, but spam is good, thanks for the laughs figjam!
notamused said
For a minute there, I thought Pam and Figjam were flirting with each other haha.
Brett, NZ is no worse than Australia.
pam said
get a life notamused
lol
marion said
ohh no … why would you open any business in NZ … kiwis are bunch of dishonest bullies .. come for a holiday but stay away from the bunch of mentaly retarded idiots … their level of politicking, hidden agendas, bullying is unbelievable
marion said
kiwis are bunch of dishonest bullies and mentaly retarded idiots … their level of politicking, hidden agendas, bullying is unbelievable
pam said
I feel for you Marion (not) hahahaha. Irate bitch has issues, must have been abused as a Child.
Oileen said
That list has nothing to do with tax returns/ refunds… it even says “Unclaimed money is not income tax refunds or any other unpaid tax refund”
Oileen said
aaand im kind of pissed my names not on the list hahahaa
dragonballz said
We need a new topic Admin! chop chop!
marion said
PAM … I had a perfect childhood but would not be surprised if you were abused as most kiwis are – in a way … who would not be when you are a sick nation …
Marita said
Can people just stop the “I hate your country/sport/people/family” line please? And particularly the “I hate you personally even though I don’t know you remotely” line? Its boring, bigoted, inflammatory, small-minded and not what this blog is supposed to be about. Surely (admin, correct me if I’m wrong) its about Aussies who have chosen to come to NZ, are looking for support/info about the life here, and are amused by the quirky differences. There is a similar blog in OZ for kiwis there, so perhaps kiwis not interested in this blog’s aim and intended audience should try that one. For those who aren’t interested in AFL, just don’t read/respond to the links associated with AFL! Lets keep this light and fun, as it began, or me and many others (and perhaps admin) are going to abandon this blog in droves, which would be a shame.
marion said
MARITA, you are absolutely right. I kind of wish that kiwis get the point that they are only PACIFIC ISLANDERS and stop putting themselves in the basket of first world developed nations … guys you are so far from it … most of you are good natured but really lacking culture and style.
Marita said
I think my point may have been missed:
Can people just stop the “I hate your country/sport/people/family” line please? … Its boring, bigoted, inflammatory, small-minded and not what this blog is supposed to be about.
Squivy said
AFL blogs closed off, so here I go on Footy (AFL and Rugby U)
Game of the weekend so far: 1) Swannies beat WC Eagles in a total, down to the wire thriller, fabulous entertainment!
2) Hawthorn (my other club) beat Fremantle – I’m stoked
3) Port Adelaide to play Richmond today – Go Port!! and for you Marita … go the Blues (Carlton) vs the Pies today
Rugby game of the weekend: Hurricanes stave off a late charge from the Qld Reds to make a home final. I love you Canes!!
Boo hoo of the weekend: Crusaders (one-eyed Cantabs) make semi-finals, Waratahs miss out (my other Rugby U team) on semis.
Go Carlton today, you can do it!!
Marita said
Now that’s a trans Tasman peace accord! Perhaps squivvy could join “our Helen” and work for the UN.
Carlton thumped the (admittedly injury-ridden but who cares) maggies and made my weekend!!!!
Mel said
Agreed, Pam. Marion appears borderline illiterate. Makes us Aussies look bad.
maxine said
Ignorant Fools like Marion and Pam should trade their Humourless Childish Insults somewhere else!!
notamused said
better still, keep it to themselves.
peter said
Marion, Kiwis are indeed very average Pacific Islanders – but agree with others that you should stop !
curious said
There’s absolutely nothing wrong with being a Pacific Islander Peter.
onion said
im sweet with nz being a pacific country which the aussies can never put a claim on
halle said
Some people on here have definitely lost the plot.
Truekiwijoker said
I think Marion is one of these Chinese people who’s too smart for NZ. We’re so stupid not spending our money on her business venture.
Squivy said
Not just erudite, also racist TK whatever!! Go away and stay away this time.
Truekiwijoker said
Maybe I should become the first person this oh so thick-skinned Admin bans? Wouldn’t that be funny?
Squivy said
It’d be absolutely hilarious …… no seriously we miss you like acne TK
Truekiwijoker said
Hey Squivy seeing as you’re an Aussie rules authority can you tell me if the umpire guy has to practice throwing the ball over his head?
Truekiwijoker said
You know, tossed backwards?
Squivy said
Goodness is that how you do it TK tosser? As you say … whatever! Are you ever sore from one-directional exercise?
Truekiwijoker said
[innocent face] Whaaa? I’m just curious about this Aussie rules oddity. No need to get nasty maaayte. I would have thought you’d be overjoyed someone non-Australian is interested in anything about Aussie rules LOL.
Squivy said
Just go to bed TK (I am ) and we’ll discuss oddities another time … like someone else I know on AEST. Toodles!
maxine said
HELL NO Truekiwijoker!! Marion is neither Chinese nor Smart.. she’s a Moron.