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Accounts Team Update

Mileage Rate for motor vehicles increased

For the 2017 tax year (1 April 2016 to 31 March 2017), the mileage rate for both petrol and diesel fuel vehicles has increased to 73 cents per km.

This year the IRD were also able to set mileage rates for hybrid and electric cars. The mileage rates for these vehicles are:

hybrid - 73 cents per km

electric - 81 cents per km.

New ACC Rates

The ACC levies have been set by regulation for the 2017-2018 tax year.
The earners' levy is set at $1.39 (GST inclusive) per $100 liable earnings.
The maximum liable earnings has increased from $122,063 to $124,053.

Use of Money Interest (UOMI) rate change

On 8 May 2017 the UOMI rates on underpayments and overpayments of tax changed.
The new rates are:

  • underpayments - 8.22% (down from 8.27%)
  • overpayments - 1.02% (down from 1.62%).
Rates are reviewed regularly to ensure they are aligned with market interest rates.

Sharing Information to combat global tax evasion

The Government has signed up to the global automatic exchange of information (AEOI) initiative led by the OECD. We're one of 100 countries that will automatically share some financial account information about foreign tax residents. All countries will use the Common Reporting Standard (CRS) to identify and report on financial accounts held or controlled by foreign tax residents.

Threshold change for correcting an error in your next tax return

On 1 April 2017, the threshold for correcting a minor error in your next tax return increased to $1,000. This applies to tax returns for:
•income tax (including RWT and NRWT)
•fringe benefit tax, and
•GST.

You can fix a minor error in your next tax return when:
•the error was caused by a clear mistake, simple oversight, or mistaken understanding on your part, and
•the total discrepancy in the assessment that is caused by the error is $1,000 or less.