Back
128 days ago

JULY--1st----Today's changes that could affect your bank account

Brian from Mount Roskill

The start of July brings a raft of changes that will affect households across the country.
From prescription changes to mortgage tweaks, the rules, fees and taxes will affect the way that many people spend and borrow money.
Here are a few of them.
===================
Debt-to-income ratios and loan-to-value restriction tweaks
==============================================
New debt-to-income rules will limit how much banks can lend to borrowers, compared to their household income.
Only 20 percent of lending can go to owner-occupier buyers with a debt-to-income ratio of six, and only 20 percent of investors loans will be able to be at a debt-to-income ratio of more than seven.
The debt-to-income calculation takes into account other debt, such as student loans.
These rules are not expected to make a big difference initially, because not much lending is currently being done above those levels. However, they are likely to limit the extent of future house price growth.
At the same time, loan-to-value rules will be eased slightly to allow banks to give 20 percent of lending to owner-occupier borrowers with a deposit or equity of less than 20 percent, and 5 percent of lending to investors with a deposit or equity of less than 30 per cent.
Previously, they could only lend 15 percent to owner-occupiers with less than 20 percent deposit and 5 percent of lending to investors with less than 35 percent.

Prescription charges
=================
A $5 charge is coming back on for prescriptions.
This does not apply to people who are over 65, Community Services Card holders, people who are under 14 or people ages 14 to 17 who are dependent on a Community Services Cardholder.

Auckland regional fuel tax abolished
==============================
The Auckland Regional Fuel Tax scheme ended on 30 June.
This is worth 11.5c per litre on petrol, diesel and their biovariants.

FamilyBoost introduced
===================
The FamilyBoost policy takes effect from 1 July, offering a payment of 25 percent of early childhood education fees for households up to $75 a week.
This is available in full to households earning up to $140,000 and reduces for those earning up to $170,000.
Households should start saving their invoices from 1 July as either PDF or JPG files, Inland Revenue says.
Payments will be made in three-monthly blocks, starting in October.

Bright-line test reduced
===================
From 1 July, the bright-line test will reduce to two years, from the current 10 years, or five for new builds.
The bright-line test sets a limit on how long properties, apart from someone's main home, have to be held to avoid tax on capital gains when they are sold.
That means that properties sold on or after Monday now need to have been held for at least two years to avoid the automatic tax.
Chartered Accountants Australia and New Zealand is warning there could be some confusion, though, because the new rules focus on the "disposal" date of a property rather than the acquisition date.
"Care needs to be taken as the dates are determined differently. The bright-line end date is determined by when the seller first enters a contract for sale, whereas the start, or acquisition date is typically determined when title transfers."
He said that could mean that anyone who had entered negotiations before 1 July could still be captured under the old rule.

Paid parental leave increases
========================
Each year, the maximum amount of paid parental leave available increases.
How much you get is determined by how much you were earning before you went on leave.
From 1 July, the maximum is $754.87 a week before tax, compared to $712.17 previously.

Gaming duty for offshore operators
=============================
From 1 July, a 12 percent offshore gambling duty applies operators who are taking bets from New Zealand residents.
Offshore gambling operators have to register for GST if they make more than $60,000 in a 120-month period. Those that are registered for GST must also now register for the duty.
Excise tax on alcohol increases
The annual adjustment of excise tax on alcohol takes place on 1 July. This is based on movements in the consumer price index in the year to March.
=================================================
www.newshub.co.nz....
==================================================

Image
More messages from your neighbours
20 days ago

What's your favourite recipe for gooseberry?

Mei Leng Wong Reporter from NZ Gardener & Get Growing

Love gooseberries? Share your favourite way to enjoy them. We're looking for our readers' favourite family recipes for this delicious crop. Send yours to mailbox@nzgardener.co.nz, and if we use it in the magazine, you will receive a free copy of our December 2024 issue.

Image
1 day ago

Workshop: Sewing Machine Parts & Maintenance

Amanda Chapman from Auckland Library of Tools

www.facebook.com...

Auckland Library of Tools (ALoT) in collaboration with Repair Cafe Aotearoa NZ (RCANZ) are excited to bring you free 1st Thursdays repair and maintenance workshops at Hackland Makerspace, just behind ALoT! Koha is appreciated, to help us continue to bring you repair cafés and workshops.

Thursday November 7 will be a basic sewing machine parts and maintenance workshop. Come learn the parts of a standard sewing machine, what they do, and how to care for them so they run smoothly for years to come. No need to bring your machine, but you are welcome to bring it if you want to get hands-on!

There will be nibbles and tea on hand, but contributions of food and beverage are always very welcome. Koha always appreciated.

Getting here:
Bus stops on Ponsonby Rd (InnerLink, 20, 105, 106, 866), Great North Rd (11T/W, 18, 20, 195), and Karangahape Rd (WX1)
We are also near the northwestern cycleway.
Limited free parking is available in the lot next door (nevermind the signs) or on side streets. There is no parking in front of ALoT/Hackland.

These workshops are part of the Repair & Share project, a weekly repair cafe hosted by ALoT, RCANZ, and Hackland and supported by Auckland Council.
www.facebook.com...
aucklandlibraryoftools.myturn.com...
www.repaircafeaotearoa.co.nz...
hackland.nz...
www.aucklandcouncil.govt.nz...

If you would like to help out at any of our workshops or repair cafes, please don’t hesitate to get in touch. You do not need repair skills to get involved. Send us a message to see how you can help. We look forward to it!

Image
1 day ago

Poll: How should Guy Fawkes be celebrated?

The Team from Neighbourly.co.nz

While it is a fun occasion, fireworks on Guy Fawkes Night has caused much conflict over the years, upsetting our pets and disrupting the sleep of neighbours.

How should we celebrate Guy Fawkes Night? Vote in our poll and share your thoughts below.

Image
How should Guy Fawkes be celebrated?
  • 28.5% With a city-wide public fireworks display
    28.5% Complete
  • 20.3% Small fireworks displays in each community
    20.3% Complete
  • 7.7% Keep it as is
    7.7% Complete
  • 32.9% We shouldn't celebrate it!
    32.9% Complete
  • 10.3% Anything but fireworks
    10.3% Complete
  • 0.4% Other - I'll share below
    0.4% Complete
1859 votes