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What
Automatic write-off of tax amounts owing
Who
Individuals whose tax assessment is automatically calculated.
When
After the end of the tax year.

When your income tax assessment is automatically calculated, you may end up with tax to pay.

We'll automatically write off your assessed tax to pay for the 2020 income tax year if it is $200 or less. For the 2019 tax year, this amount is $50 or less.

If your assessed tax to pay is over these amounts, we'll automatically write off the full amount if you're eligible and either:

  • your income is from an income tested benefit, an education grant, New Zealand superannuation or a veteran's pension and you have no more than $200 of other reportable income, such as interest or dividends
  • it arises only because you had an extra pay period during the year.

When you are not eligible for an extra pay period write-off

If you have a Working for Families entitlement, were the primary caregiver and were entitled to Working for Families at any time during the year, we will not write off your assessed tax to pay if your only income is from an income tested benefit, an education grant, New Zealand superannuation or a veteran's pension.

If your assessed tax to pay arises only because you had an extra pay period during the tax year, we will not automatically write it off in the following situations.

You have used a tailored tax code

If you used a tailored tax code during the year.

Your tax code or tax rate was wrong

If we recommended you use a higher tax code for your PAYE, or a higher tax rate for your investment income, and you consented to the change.

We may do this if you have:

  • used an unsuitable tax code for your PAYE
  • had tax deducted at a rate lower than the correct rate on schedular payments, an extra pay or secondary employment income
  • had tax deducted at a rate lower than the correct rate on investment income that has RWT deducted
  • annual income over $48,000 and received a Māori authority distribution, income from election day work on an EDW tax code or as a casual agricultural employee on a CAE tax code
  • untaxed employee share benefit scheme income.

You have a Working for Families entitlement

If you are the primary caregiver and were entitled to Working for Families at any time during the year.