Ngā puka tāke moniwhiwhi o ngā tarahiti me ngā pānga tuku iho - IR6 Income of trusts and estates - IR6 returns

Data was extracted from the IR6 returns on 24 November 2022 and includes both trusts and estates. Data will be updated in December 2023.

Income of trusts and estates data from the 2001 to 2021 tax years is available in the accompanying graphs and for download from the link at the bottom of the page. The accompanying tables and graphs include revisions of previously published data from 2015 to 2020 due to additional returns having been filed or updates to returns previously filed having been made.

The data for trusts and estates only includes data for those trusts or estates that allocate beneficiary or trustee income in the IR6 return. The taxable income of estates and trusts must be either allocated to the underlying beneficiaries and taxed at their appropriate tax rate, or it is trustee income and is taxed at the trustee tax rate. Trustee income is recorded net of trust expenses and losses claimed following a revision to the format of the IR6 return in 2009.

Data for the tables and graphs was extracted from Inland Revenue systems on 1 December 2022.

Graph of income of trusts IR6 returns

The graph above shows trustee income and beneficiary income from March 2001 to March 2021 as reported in the IR6 return, with trustee income reported net of expenses and loss claims from 2009 onwards.

Over the period 2001 to 2021, trusts and estates have typically received between 40% and 60% of their income as imputed dividends from companies. Much of the volatility in trustee income seen over the 2001 to 2021 period is because of volatility in dividends paid by companies to their shareholders. Over the 2001 to 2010 tax years, trustee income grew by 420% ($8.3 billion) following significant growth in dividend income received by trusts.

In the 2009 tax year the company tax rate dropped from 33c to 30c. The company tax rate dropped again in the 2012 tax year to 28c. Following both changes to the company tax rate, companies could attach imputation credits to dividends with reference to the higher preceding company tax rates for an additional two years. The changes in the company tax rate and the ability to impute dividends at a higher rate for a short period resulted in a spike in trustee income in the 2010 and 2013 tax years as companies temporarily increased their dividend payments to their shareholders. Trustee income dropped substantially in the years following the higher dividend payments (2011 and 2014 tax years) as firms adjusted their dividend distributions after the higher pay-outs in the preceding years.

On 1 April 2021, the personal income tax scale changed with the introduction of a higher rate of 39c for income over $180,000. The growth in trustee income in the 2021 tax year arises from companies paying out retained earnings as imputed dividends to their shareholders, including trusts, prior to the introduction of the 39c top personal tax rate.