Tax returns available
A 2025 tax return with a Not started status will be created if a 2024 return was created by 28 March.
A 2025 tax return won't be created if a 2024 return wasn't created, or if a 2024 return was created but has a Not started status.
To roll over data from the 2024 return to the 2025 return, click anywhere in the row showing Not started.
You can also add a 2025 return by clicking Add new. This will roll over data if a return existed in the previous year.
New data rolled over
Rolled over tax return data now includes shareholders (IR4), beneficiaries and settlors (IR6) and partners or owners (IR7). In addition to name and IRD number, rolled over data includes:
Beneficiaries – Date of birth or commencement date, full address, jurisdiction of tax residency, tax identification numbers (TIN) and TIN settings. In account movements, the opening balance will be rolled over from last year's closing balance.
Settlors – Date of birth or commencement date, jurisdiction of tax residency, tax identification numbers (TIN) and TIN settings.
Partners/owners – Attribution of income/loss percentage.
Rate changes
Changes to the individual income tax thresholds came into effect on 31 July 2024. For the 2025 tax year, transitional rates apply for individuals and unincorporated clubs and societies. For the detailed breakdown of the rates and thresholds, see Inland Revenue's (IR's) Tax rates for individuals.
The independent earner tax credit (IETC) eligible range increased to $70,000 and the abatement increased to $66,000 on 31 July 2024. As the eligible range changed mid-year, IETC has a transitional calculation for 2025.
ACC earner levy changes:
Levy rate has increased to 1.60%.
Maximum levy payable is $2,276.52.
Maximum earnings for the levy are $142,283.
Student loan annual repayment threshold has increased to $24,128.
Working for families rate changes:
Family tax credit has increased to $7,524 for the first child and $6,130 for any subsequent children.
In-work tax credit has increased to $5,070 for the first 3 children from 31 July 2024.
Best start entitlement has increased to $3,838 per child.
Minimum family tax credit has increased to $41,483 (before tax). Due to the individual income tax threshold changes, this is $35,204 after tax until 30 July, and $35,316 after tax from 31 July.
IR6 changes
IR6 – Tax on trustee income
Tax that a trust is required to pay now depends on its specific circumstances. For details, see IR's Trustee income tax rates.
The compliance settings have two new fields: Tax trustee income as and Trust start date/Estate start date (date of death). These ensure the correct tax rate calculation is used in the 2025 onwards IR6 tax return and the trust tax notices:Tax trustee income as field options:
Ordinary trust – Taxed at 33% on $10,000 and less. Over $10,000 is taxed at 39%. This option is the default.
Deceased estate – Taxed at 33% for the year of death and following three years. Afterwards taxed as an ordinary trust. The date of death must be entered for tax to be calculated at 33%.
Disabled beneficiary trust – Taxed at 33%.
Energy consumer trust – Taxed at 33%.
Widely held or legacy superannuation fund - Taxed at 28%.
Trust start date/Estate start date (date of death) - This field is required for a deceased estate to have its tax calculated correctly. The field is optional for trusts.
To help you prepare the return, the start of the Trustee income section will have the Tax trustee income as option selected and will have the date of death for a deceased estate displayed.
IR6 – Tax on beneficiary income
If the trust is paying tax on the beneficiary’s income:
The tax will be automatically calculated. You'll need to select the tax rate from the Tax beneficiary income at options. If the Individual tax rates option's selected, you may also need to enter Beneficiary income not received from the estate or trust. This is because the portion of beneficiary tax payable by the trust is based on all the beneficiary income, not just their income from the trust. For more details, see the Tax on beneficiary income section of IR's IR288 guide.
You can enter your own amount in the Tax on taxable income field if you don't want the beneficiary tax automatically calculated.
If the trust is non-complying, the Tax on non-complying trust distribution will be automatically calculated using the 45% tax rate.
If the trust is not paying tax on the beneficiary’s income, the fields related to the calculation of tax are hidden.
IR6 – Minor and corporate beneficiaries
If the minor or corporate beneficiary rules apply to the beneficiary, the income must be taxed as trustee income. For details, see IR's Getting beneficiary income. If the rules apply, you must select Yes at Beneficiary’s income is subject to the corporate and minor beneficiary rule. The option is available after selecting Yes at Estate or trust paying tax on beneficiary’s income.
When Yes is selected at Beneficiary’s income is subject to the corporate and minor beneficiary rule for a beneficiary:
No fields for calculating beneficiary tax or for showing tax credits will be shown, as you only need to enter the allocation of income.
The beneficiary’s income total will be included in Beneficiary income taxed as trustee income in the Income allocation section.
Tax will be calculated at a 39% tax rate and displayed in the Tax on beneficiary income taxed as trustee income field in the Trustee income section. This will be added to the tax payable on trustee income, then any tax credits will be deducted.
The beneficiary's income won't be distributed to their return. In the distribution window, you'll see No action required – a distribution can't be made to a minor or corporate beneficiary.
If the corporate beneficiary has some distributions do and don't fall under the corporate beneficiary rule, add the beneficiary twice – one to be taxed as a corporate beneficiary and one for the other distributions. You'll need to use the IRD number for one, and the tax identification number for the other.
If the IR6 is for a disabled beneficiary trust, you can't select Beneficiary’s income is subject to the corporate and minor beneficiary rule.
Minor or corporate beneficiary tax will be included in the Beneficiary tax field of tax notices.
3 April 2025 update – This issue is resolved.
When a return has a status of pending client signature or later, the tax for a minor or corporate beneficiary is currently not being included in the amounts shown in the 2025 terminal tax and 2026 provisional tax notices. We'll fix this as soon as possible. For now, update the beneficiary tax field in the tax notice to include the minor or corporate beneficiary tax to ensure the residual income tax (RIT) used in the tax notices is correct.
IR6 – Beneficiary account movements
Account movements for beneficiaries is simplified and now only has a field for taxable distributions and non-taxable distributions. The fields for specific types of distributions have been removed.
You no longer have to indicate if there was a distribution made to a beneficiary that was valued at nil.
IR6 – Additional reporting requirements
Land and Buildings is combined into a single field in the Statement of financial position > Assets section of the Additional reporting requirements. There is now also only one valuation method for land and buildings.
IR6 – Settlors
Land and Buildings is combined into a single field in the Settlors > Settlement section.
You no longer have to indicate if a zero valued settlement was made.
IR6 – Tax statement
The tax statement includes the minor and corporate beneficiary allocation and tax amounts.
Beneficiary income and tax credits section now only prints fields for items that have an amount.
When any excess dividend imputation credits are converted to a loss to carry-forward, the applicable tax rate of the trust will be used.
IR3NR changes
Total PIE tax credits allowed in a non-resident individual return is the lesser of the actual amount of PIE tax paid or the amount of NZ tax payable on the PIE attributed income. If you file a return with more than the allowable PIE tax credits, you receive error 2053. To assist you filing successfully, we’re now calculating the allowable PIE tax credits for you in the IR3NR PIE income schedule. You can override the amount, if required.
All related fields for Independent earner tax credit (IETC) have been removed. There's no longer a Tax credits section in the IR3NR as this was the only item in the section.
Other compliance changes and general improvements
The residential property interest claimed reason Loans drawn down prior to 27 March 2021 is now Phasing of interest as there's no longer a limitation of when the loan was drawn down. In the Rental income statement, the interest claimed reason rate for Phasing of interest is adjusted to 80%.
In an IR3, Total family tax credit from work and income is removed. This was previously in the Income with tax deducted from summary of income section.
In an IR7, Portfolio investment entity (PIE) income is removed. In a partnership, each partner pays tax on their share of the income. For details, see IR's Partnership portfolio investment entity income.
There's no longer a reference to base erosion and profit shifting (BEPS) in the disclosure question related to controlled foreign companies (CFC) and foreign investment funds (FIF) income in an IR4, IR6, IR7 or IR8.
The schedules now print in the same order that the tax statement prints the income, which aligns to the order of the tax return.
If IR expect a different return type or balance month, you'll see a warning after pre-populating the return. If you don’t fix the warning after pre-populating, you'll see the warning a second time when you validate the return. If you don’t fix the warning before filing, the tax return may be rejected. If you need help with a pre-population warning, see Fixing differences with Inland Revenue data.