Rules for tax invoices are changing on 1 April 2023
Keeping GST records is about to get easier.
New GST laws come into effect in April. The Government has modernised rules for invoicing and record-keeping, and the requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information’.
New laws introduced by the Government, taking effect on 1 April 2023, have modernised the GST rules for invoicing and record keeping.
The requirement to use tax invoices is being replaced by a more general requirement to provide and keep certain records known as ‘taxable supply information’.
The changes provide more flexibility. Invoicing practices compliant with the current rules will continue to comply with the new rules.
How you calculate GST is not changing.
Minimum wage rising to $22.70 per hour from 1 April 2023
The Government has increased the minimum wage by $1.50 an hour to $22.70, a 7% increase in line with inflation. The changes come into effect in April.
The Prime Minister has announced that the adult minimum wage will be rising to $22.70 per hour from 1 April 2023.
This is an increase of $1.50 per hour from the current hourly rate of $21.20 and aligns with the 7.2% rate of Consumer Price Index inflation in the year ended December 2022.
The training and starting-out minimum wages will also both increase to $18.16 per hour, remaining at 80% of the adult minimum wage. This is a rise from the current minimum rate of $16.96 per hour.
For an employee who works 40 hours a week, the minimum wage rise to $22.70 per hour means they’ll earn an extra $60 each week before tax.
Around 222,900 New Zealand workers currently paid between the current and new minimum wage rates will get an increase in their pay packets as a result of the change in the minimum wage.
The Government will review the minimum wage rate again later this year.
IRD increases visibility of sales data
From April 1, 2023, payment service providers (i.e. EFTPOS providers and online payment platforms) must provide information to Inland Revenue every six months on all transactions processed. Inland Revenue will compare this information with what businesses have filed in their tax returns. They will follow up on any discrepancies in these comparisons.
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