“Between $48,000 and $70,000

• “(2) If the sum of the amounts referred to in subsection (1) is more than $48,000 but no more than $70,000, the amount of tax for the extra pay that must be withheld is the amount determined using the basic amounts of tax for PAYE income payments set out in schedule 2, part B, table 1, row 2 (Basic tax rates for PAYE income payments).”

Table 1

Row	Range of dollar in taxable income	Tax rate
1	$0 – $14,000	0.125
2	$14,001 – $48,000	0.210
3	$48,001 – $70,000	0.330
4	$70,001 upwards	0.380
How to use this table:Find the range in the second column for each dollar in the person's taxable income, and apply the relevant rate for the dollar in the third column.

Table 1

Row	Range of dollar in all-inclusive pay	Tax rate
1	$0 – $12,250	0.1429
2	$12,251 – $39,110	0.2658
3	$39,111 – $53,850	0.4925
4	$53,851 upwards	0.6129
How to use this table:Find the range in the second column for each dollar in the person's all-inclusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.

Table 1

Row	ESCT rate threshold amount	Tax rate
1	$0 – $16,800	0.125
2	$16,801 – $57,600	0.210
3	$57,601 upwards	0.330
How to use this table:Find the range in the second column for the last dollar of the amount of salary or wages under section RD 69(1), and apply the relevant rate in the third column.

• “(c) ‘S’ for secondary employment earnings for an employee whose annual income is not more than $48,000:

• “(d) ‘SH’ for secondary employment earnings for an employee whose annual income is more than $48,000 but is not more than $70,000:”.

“Tax credits for independent earners

“LC 13 Tax credits for independent earners

• “When this section applies

  “(1) This section applies for a natural person, for a period (the credit period) in a tax year when the person––

  • “(a) is not receiving an income-tested benefit; and

  • “(b) is not receiving a veteran's pension; and

  • “(c) is not receiving New Zealand superannuation; and

  • “(d) is not entitled to a WFF tax credit; and

  • “(e) is not the spouse, civil union partner, or de facto partner of a person who is entitled to a WFF tax credit; and

  • “(f) is not receiving an amount that is—

    • “(i) granted outside New Zealand; and

    • “(ii) in the nature of, and paid for similar purposes as, a benefit, pension, superannuation payment, or tax credit described in paragraphs (a) to (d); and

  • “(g) is not the spouse, civil union partner, or de facto partner of a person who receives an amount that is—

    • “(i) granted outside New Zealand; and

    • “(ii) in the nature of, and paid for similar purposes as, a tax credit described in paragraph (d); and

  • “(h) is resident in New Zealand.

  “

  “Amount of credit

  “(2) For the credit period, the person has a tax credit equal to the positive amount calculated using the formula––

  (person's credit − full year abatement) × credit period months / 12.

  “Definition of items in formula

  “(3) The items in the formula are defined in subsections (4) to (6).

  “Person's credit

  “(4) Person's credit is, if the person's net income for the tax year is equal to or more than $24,000, $520. Otherwise it is zero.

  “Full year abatement

  “(5) Full year abatement is, if the person's net income is greater than $44,000 for the tax year, 13 cents for each complete dollar of the excess.

  “Credit period months

  “(6) Credit period months is the number of whole months in the credit period.

  “Defined in this Act: amount, civil union partner, de facto partner, income-tested benefit, net income, New Zealand superannuation, resident in New Zealand, tax credit, tax year, veteran's pension, WFF tax credit”.

“Modification for 2009–10

• “(4) Despite subsection (3)(a), the amount of tax that the person must withhold and pay may, if the person chooses, be calculated, under subsection (3), using a tax rate of 0.38 if—

  • “(a) the payment of resident passive income is made in the 2009–10 tax year; and

  • “(b) the tax rate under subsection (3)(a) would be 0.39 in the absence of this subsection.”

• “(1B) The Commissioner may write off an amount of outstanding tax to the extent to which the amount––

  • “(a) is outstanding from the 2008–09 tax year; and

  • “(b) is tax payable under section MF 5(2) or MF 6(2) of the Income Tax Act 2007, or is otherwise the result of WFF tax credit overpayment or overcrediting; and

  • “(c) is outstanding due to amendments to the family scheme made by the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008.

• “(1C) The Commissioner must write off an amount, not exceeding $100, of outstanding tax to the extent to which the amount––

  • “(a) is outstanding from the 2008–09 tax year; and

  • “(b) is tax payable under section MF 5(2) or MF 6(2) of the Income Tax Act 2007, or is otherwise the result of WFF tax credit overpayment or overcrediting.”

• “(a) 2% of the employee's gross salary or wages, if––

  • “(i) section 60(1)(a), (b) or (c) first applied in respect of the employee on or after 1 April 2009 and the employee has not given his or her employer a notice under subsection (2); or

  • “(ii) section 66A applied in respect of the employee immediately before 1 April 2009; or

• “(ab) 4% of the employee's gross salary or wages, if section 60(1)(a), (b) or (c) first applied in respect of the employee before 1 April 2009 and the employee has not given his or her employer a notice under paragraph (b); or”.

• “(2) Despite subsection (1), the employee may change their contribution rate from their current contribution rate described in subsection (1) to another rate in that subsection (new rate) by giving notice to their employer of the new rate.”

• “(4) However, on and after 13 December 2007, parties to an employment relationship are free to agree contractual terms and conditions that disregard the purpose of this section described in subsection (1), and, to the extent of such agreement, subsections (1) to (3) do not apply, unless, in respect of the employer and employee,––

  • “(a) section 60(1)(a), (b) or (c) first applies on or after the day of assent for the Taxation (Urgent Measures and Annual Rates) Act 2008; and

  • “(b) the contractual terms and conditions do not account for the amount of compulsory contributions the employer is required to pay.

• “(4A) In the circumstances described in subsection (4)(a) and (b), despite subsection (4),––

  • “(a) compulsory contributions must be paid in addition to an employee's gross salary or wages described in section 101D(3), in accordance with the purpose of this section described in subsection (1); and

  • “(b) subsections (2) and (3) apply.”

• “(b) 2%, if the payment of gross salary or wages is made for a pay period that is in a year starting on or after 1 April 2009.”

“235 Protection from non-compliance: Taxation (Urgent Measures and Annual Rates) Act 2008

• “(1) If, as a result of amendments provided by the Taxation (Urgent Measures and Annual Rates) Act 2008, there is non-compliance with an Act related to securities before 14 February 2009, the non-compliance is ignored unless it continues on or after 14 February 2009.

  “(2) Every provider of a KiwiSaver scheme or a complying superannuation fund, and every person acting on behalf of a provider is exempted in connection with the KiwiSaver scheme or complying superannuation fund from complying with regulation 7A(4) of the Securities Regulations 1983 in respect of information that must be disclosed in an investment statement because of changes to the scheme, fund, or the securities arising from any provision of the Taxation (Urgent Measures and Annual Rates) Act 2008.

  “(3) The exemption in subsection (2) applies only in relation to an investment statement that has been first prepared and dated before 1 January 2009.

  “(4) The exemption in subsection (2) applies if all information, statements, and other matters specified under italicised questions set out in Schedule 3D of the Securities Regulations 1983 that are required to be contained in an investment statement in respect of a security are—

  • “(a) set out in a consistent style or format; and

  • “(b) clearly identified as relating to particular questions.

  “(5) Subsections (2) to (4) cease to have effect on and after 30 June 2009.”

“20 Fee subsidy

• “(1) This regulation applies for a person if––

  • “(a) the person is an employee who is a member of a KiwiSaver scheme, and is subject to the automatic enrolment rules before 1 April 2009:

  • “(b) the person is an employee who is a member of a KiwiSaver scheme, and opts in under section 34(1)(b) of the Act before 1 April 2009:

  • “(c) a KiwiSaver scheme provider receives a valid application for membership for the person before 1 April 2009.

  “(2) The chief executive of the Department must pay a fee subsidy of $20 for the person on each of the dates for the person provided in subclause (3).

  “(3) For the person,––

  • “(a) if 1 or 3 fee subsidy instalments have been paid before 1 April 2009, the date for the purpose of subclause (2) is 6 months after the last fee subsidy instalment:

  • “(b) if no fee subsidy instalment has been paid before 1 April 2009, the dates for the purpose of subclause (2) are––

    • “(i) the date on which the Crown contribution made under section 226 of the Act is payable in respect of the person; and

    • “(ii) 6 months after the date described in subparagraph (i).

  “(4) Each payment of the fee subsidy must be paid to the provider of the person's KiwiSaver scheme.

  “(5) The provider must use the contribution allocation for the person to credit each payment of the fee subsidy across the investment products of the KiwiSaver scheme to which the member has subscribed or been allocated.

  “(6) However, if the person has subscribed or been allocated to more than 1 investment product of a KiwiSaver scheme and 1 or more of those investment products contain unvested employer contributions or any other contributions that are not fully vested in the member, the provider must, to the extent practicable, credit the fee subsidy on a pro rata basis across only the investment products that do not contain those sorts of contributions.”