Key tax changes you may notice impact this year are as follows:
Funds borrowed before on rental property.
Some good news – the interest you can claim for funds borrowed for rental properties acquired before 27 March 2021 has increased from 50% to 80% for the 2025 tax year and will be 100% for the 2026 financial year which has commenced.
Financial Year | Percentage of Interest That Can Be Claimed |
|---|---|
31 March 2023 | 75% |
31 March 2024 | 50% |
31 March 2025 | 80% |
31 March 2026 | 100% |
Income Tax Thresholds
The 2025 year will see the impact of the Trust tax rate changed from 1 April 2024 changed from 33% to 39%.
The personal income tax rate thresholds increased on 1 July 2024, part way through the 2025 financial year leading to slightly lower effective tax rates. The has led to income blended thresholds for the 2025 year for individual tax rates set out below for 2025 and 2026. A person on a $70k salary can expect a reduction in their tax of $535 for the 2025 year and a further reduction of $264 in the 2026 year.
2025 Individual Income tax rates
Income From | Income To | Tax Rate |
|---|---|---|
$0 | $14,000 | 10.50% |
$14,001 | $15,600 | 12.82% |
$15,601 | $48,000 | 17.50% |
$48,001 | $53,500 | 21.64% |
$53,501 | $70,000 | 30% |
$70,001 | $78,100 | 30.99% |
$78,101 | $180,000 | 33% |
$180,001 | & over | 39% |
2026 Individual Income tax rate
Income From | Income To | Tax Rate |
|---|---|---|
$0 | $15,600 | 10.50% |
$15,601 | $53,500 | 17.50% |
$53,501 | $78,100 | 30% |
$78,101 | $180,000 | 33% |
$180,001 | & over | 39% |
