GOOD TO KNOW 02
For the second instalment, we discussed the end of the financial year with a trusted finance expert. We touched on what the end of financial year actually means and steps you could be taking when it comes around.
Money can be a pretty taboo topic, but it shouldn’t be! Spend the next couple of minutes reading to find out more.
From a chartered accountant and licensed financial advisor.
At the end of March/beginning of April, we start hearing the terms “end of tax year” and “Tax Time”. So what does this actually mean?
Every year, the 31st of March marks the end of the New Zealand Income Tax Year. This is a 12 month period that a business uses for financial and tax reporting purposes. It can also be known as a “fiscal year” and it can be different to a calendar year, not starting on January 1 and December 31. Here in NZ from the 1st of April, you can log on to myIR with Inland Revenue to check if you are due a tax refund if you are a wage or salary earner.
It costs absolutely nothing to check your details and request your refund if your employer has deducted too much tax from your wages or salary throughout the year. Once the refund request is submitted, the designated amount is deposited straight into the account which you have provided IRD. They will also contact you if they need your account information or any other information before processing and depositing the refund.
In New Zealand, we also have Kiwisaver which is a voluntary, work-based retirement savings scheme. Most people open a Kiwisaver account when they begin working in order to start putting money aside for retirement as early as possible. This is done through an automatic deduction from your salary/wages by your employer.
Once you have a Kiwisaver account set up, you can also use myIR to check your Kiwisaver details. This includes things like your scheme provider details as well as a contribution summary. Kiwisaver is a great way to save for your retirement or you can also gain access to your kiwisaver and use it for a deposit for your first house. Small deductions from your pay over extended periods of time add up to significant sums if you start early, so it’s a great way to save painlessly. It is also important to remember that the government will also contribute $541 annually as long as you contribute $1,086 by 30th of June each year. This is why it is important to check your contribution summary and if you need to, give it a top up in order to receive that government contribution.