Tax Watch: Budget 2026 edition
Client alertThis special edition of Tax Watch summarises everything you need to know about Budget 2026.
19 Jun 20261 min read
For the 2026 income year (1 April 2025 to 31 March 2026), the prescribed square metre rate for calculating home office expenses is $57.30.
Inland Revenue has implemented two new methods to deal with overdue tax debt. The first is automated calls or voicemail messages to around 2,000 taxpayers who have outstanding debts over $100. The calls will take place between mid to late June from IR’s official number: 0800 951 758.
And some clients with older tax debts that have been outstanding for more than six months may be contacted by Baycorp, which has been engaged as a third‑party debt collection agency.
Inland Revenue announced that from September 2026, all taxpayer ruling applications and pre-lodgement meeting requests must be submitted through myIR, aligning the process with other IR services and improving efficiency.
The change only affects how applications are submitted—there are no changes to the information required or the ruling process itself, though most paper forms will be retired while existing email channels remain for general communication.
This special edition of Tax Watch summarises everything you need to know about Budget 2026.
A global minimum tax has been introduced, which ensures that large multinationals pay at least 15% tax in all the jurisdictions they operate. This will have the effect of “reducing the incentive for profit shifting and placing a floor under tax competition, bringing an end to the race to the bottom on corporate tax rates,” as the OECD explains.
For retirement villages, there’s one area of complexity where the correct treatment can really pay dividends, and that’s GST. However, it can get complicated for retirement village operators; it’s easy to get wrong and can be very expensive to fix.