Taxation bill now in effect

On 30 March 2026, the Taxation (Annual Rates for 2025 −26 Compliance Simplification, and Remedial measures) Bill received Royal assent, passing it into law.

Alongside these legislative amendments, our April 2026 changes also include other policy and remedial items, system enhancements, and the annual rate and threshold updates. Changes include (but are not limited to):

• A new option of ‘scheme pays’ is available for paying tax on some overseas pensions, with tax withheld at a flat rate of 28% from the transferred pension amount.
• The KiwiSaver default minimum contribution rate for both employers and employees increases to 3.5% effective from the 1st pay date on or after 1 April 2026.
• Employees aged 16 and 17 who are enrolled in KiwiSaver will be eligible for compulsory employer contributions.
• Some property income details will automatically pre‑fill income tax returns using information from IR3R and IR833 attachments, which are now filed first. The figures can still be reviewed and updated if needed.
• Best Start will be income tested from the 1st year, aligning it with the approach already used in years 2 and 3.
• The in-work tax credit will temporarily increase by $50 a week, from $97 to $147, until 31 March 2027 or until the price of 91 petrol is below $3 per litre for four consecutive weeks (whichever is earlier).
• Student loan, ACC and Working for Families rate and threshold changes apply.

New and updated website content, guides and resources will be available on our website. Topic-based webinars are already available.

Changes coming in April 2026