April 2021 Tax Changes

  1. ACC Earner Levy Threshold – There are no changes to the ACC Earner Levy Threshold this year.
  2. Student Loan Threshold – The Student Loan Threshold has increased to $20, 280 and the required deduction remains at 12%.
  3. New Top Tax Rate – A new Main Tax Rate of 39% takes effect from $180,000.
  4. New Extra (Lump Sum) Tax Rate – The new Main Tax Rate of 39% is reflected in the Extra Lump Sum tax calculation, from $180,000.
  5. New ESCT Tax Rate – A new ESCT R=Tax Rate of 39% takes effect from $216,000.
  6. New Tax Codes – Two new Tax Codes for Very High Secondary Earnings (SA) and Very High Secondary Student Loans (SA SL) at 39%.
  7. Kiwisaver Opt-Out – The following changes to Kiwisaver take effect:
      1. New ‘Auto Enroll’ at commencement to be used for an employee where this is their first employment and enrolling into Kiwisaver.
      2. ‘Opting Out’ should no longer be used when Commencing an employee unless a KS10 is provided at commencement.
  8. The Minimum Wage is rising to $20 an hour from $18.90 for all worked hours from April 1st.

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