Audio and visual transcript
Visual
We see the words 'Earning an additional income?'
Ivy and Rikki from Te Tari Taake Inland Revenue are speaking.
The words change to 'Secondary Income. Know what to do'.
Audio
Ivy
Kia ora, I’m Ivy.
Rikki
And I’m Rikki, from Inland Revenue Te Tari Taake.
Ivy
Tax can be complicated, so we’re here to tell you what to do if you earn an additional source of income.
Visual
Alex appears in-front of her work desk, with a roll of blueprints in her hand.
Audio
Ivy
Meet Alex, she earns $70,000 a year as an interior designer.
Visual
Alex now appears in an art gallery gesturing towards the art on the walls.
Audio
Rikki
She also works at a local art gallery, earning her another $5,000 a year.
Visual
Ivy and Rikki appear side by side with an A-frame board between them.
The board shows Alex's total income of $75,000, the tax code 'ST' and the secondary tax rate of 33%.
Audio
Ivy
That brings her total annual income to $75,000.
Rikki
For her additional income, Alex uses the secondary tax code ‘ST’.
Ivy
With this code, Alex’s additional income gets taxed at 33%, which is just right for her total income.
Rikki
If either of Alex’s incomes change, she may need to switch to a different secondary tax code.
Visual
The camera zooms into the A-frame board, displaying the different tax brackets, codes, and rates.
Audio
Ivy
It's key to remember, secondary tax rates are based on your total income to ensure you’re taxed correctly on
every dollar.
Rikki
And don’t worry, using the right secondary tax code means you're not overpaying tax; it's about paying the
right amount.
Visual
Ivy and Rikki are speaking side by side
Video closes with the Inland Revenue logo.
Audio
Ivy
So, stay on top of your situation, just like Alex. Use the right tax code and be sure you’re paying the right
amount of tax during the year.
Rikki
And help avoid a potential bill.