Company Tax Rate drop
The Company tax rate dropped from 30% to 28% on 1 April 2011.
The reason was to align with Australia who will also drop their Company tax rate to 28%.
While this sounds great it doesn't help NZ small businesses too much as we still need to get income out into the shareholders hands at some point.
So at the end of the day the key tax rates for small business is the personal tax rates.
NZ rates (including ACC) top out at 35c at $70k - while the Australian rate is 37c over $80k. - however in Australia you can deduct all types of things against your income, which is good from a tax perspective but pretty complex as well.
The other thing to consider is the GST rate which is 10% in Australia but 15% here but again over the ditch they charge GST only on certain items.
I think I prefer our model which is simple and relatively easy to use.
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