Good on the IRD for putting a full page spread in this morning’s NZ Herald about the GST rate increase on 1 October and the other tax changes which come into effect on that day.
The GST impact on finance leases, gym memberships, insurance policies and layby sale agreements gets particular mention.
It’s also worth remembering what the increase means for operators of coin operated vending machines. The GST rate for them will depend on when they remove the coins from the machine. So if they clear their machines out at 5 to midnight on 30 September the rate will be 12.5% and 10 minutes later it’ll be 15%.
Hopefully charities running raffles at the moment have remembered to factor in the extra GST cost as well when calculating their ticket price and projected returns. The GST rate for raffles depends on when the raffle is drawn. Sell tickets now and draw the raffle before 1 October and the rate is 12.5%. Sell tickets now and draw the raffle on 1 October or later and the rate will be 15%. This means a reduction in net proceeds for the raffle organisers of nearly 2%.