Rates changes
ACC Earner Levy maximum liable earnings have increased to $130,911.00. The earning rate is unchanged at 1.39%, which results in $1,819.66 being the maximum payable amount.
The Student loan repayment threshold is now $20,020.00. The adjusted net income threshold has decreased to $500.00.
Portfolio investment entity income (PIE)
For 2021, IR3's portfolio investment entity (PIE) income uses a different calculation to the rest of the return. The PIE schedule has been modified to support these changes, and the schedule's result is included in the final tax calculation.
Learn more about handling PIE income in tax returns.
For IR3 2020 tax returns, the calculation hasn't changed.
Government subsidy
The IR3 and IR3NR returns have new Government subsidy fields. These fields are for reporting the total Covid-19 wage subsidy, wage subsidy extension, wage subsidy resurgence and wage subsidy March 2021 payments received by an individual where tax wasn't deducted at the source and passed on to Inland Revenue.
The Government subsidy schedule is now available in the Tax workpapers & schedules drop-down.
The IR3 and IR3NR Tax Statement has been updated to include the Government subsidy.
Loss carry-back
Loss-carry-back to 2020 now appears in its own section of the return. The amount in this field is filed with Inland Revenue (IR) but doesn't form part of the total income. A Loss carry-back schedule has also been added.
As the Loss carry-back scheme was temporary, there's no field for loss-carry-back from 2022 in the 2021 return.
The Tax statement has been updated, and the Loss carry-back to 2020 will only show in the Losses summary.
These changes for Loss carry-back apply to IR3, IR3NR, IR4 and IR6.
The IR7 no longer has any fields related to the loss carry-back.
Refundable research and development tax incentive credits
Refundable research and development tax incentive credits have been added for IR3, IR3NR and IR6 returns. This field has been available in an IR4 return since 2020.
For IR3, IR3NR, IR4, and IR6:
an Excess non-refundable research & development tax incentive credits brought forward field has been added
the Tax Statement has been updated to reflect the new research and development changes.
Rollover
If a 2020 return existed in MYOB Practice with attachments and schedules, it will be automatically rolled over into 2021 return, except for the detailed rental and business schedules. There will be no data in these schedules for 2021 with a few exceptions. You can populate schedule data via pre-populate from IR and data sharing.
Provisional and terminal tax notices
Individual entity types only
For all tax calculations for 2022 onwards, tax rates have a 39% bracket for income over $180,000. Provisional and terminal tax notices will take this new tax bracket for individuals into account when calculating Tax on taxable income.
Read-only tax notices are not affected. If tax notices are based on filed or assessed returns, the Tax on taxable income is automatically calculated in the compliance form already.
2022 provisional and 2021 terminal tax notices have a new Other debits field. It’s for entering data about portfolio investment entity debit/credit and Non resident withholding tax debit.
Other changes
The IR4 Tax statement will no longer include Resident land withholding tax (RLWT) credits in the tax column of the Income section. RLWT will now show as a separate line item in the Refundable tax credits section.
We’ve made description and field changes in IR215. In particular, the Retirement contributions and Depreciation recovered fields have moved from Section A for Working for families into Section B for All Customers. The additional field for Income from retirement schemes has been removed.