The Government's Budget released on 20 May introduced a number of tax changes. 
The main changes are:

• A GST rate change,
• RWT and PIR (PIE tax) changes,
• Individual income tax rate changes,
• Tax depreciation changes.

Further information is provided below. 
GST (Goods and Services Tax) Rate Increase 
On 1 October 2010 the rate of GST increases from 12.5% to 15%. 
The GST increase has wide-ranging implications for many of our businesses across New Zealand. 
The GST/Tax Changes Project will identify all areas of ANZ New Zealand impacted by the GST rate increase and ensure the appropriate processes are in place to manage the increase.

Areas businesses need to consider include:

• Are fee/pricing changes required?
• IT systems - for invoicing customers and processing invoices received,
• Third party vendor systems that we are dependent on,
• Marketing collateral - GST rate change and any fee/pricing changes,
• Internal tools e.g. calculators,
• Outsourced functions e.g. journals,
• Web and intranet content,
• Training materials including etrain modules,
• Contracts,
• Policies and procedures.

RWT and PIR (PIE) Rate Changes 
On 1 October the resident withholding tax (RWT) and prescribed investor rates (PIR) will change. 
The following will occur on 1 October automatically unless the customer/investor advises another RWT or PIR rate applies:

• Individuals current RWT rate will be updated to the corresponding new RWT rate, and
• Investors current PIR will be updated to the corresponding new PIR.

Individual Income Tax Rate Changes 
Individual income tax rates are changing on 1 October 2010. 
Due to the individual income tax rates changing midway through the income year the actual income tax rate for an individual for 2010-11 income year will be a composite rate.                          
Income  Current Income Tax Rates        Income Tax Rates from 1 October 2010    Composite Income Tax Rates     
$0 - $14,000    12.5%   10.5%   11.5%  
$14,001 - $48,000       21%     17.5%   19.25% 
$48,001 - $70,000       33%     30%     31.5%  
$ 70,001 plus   38%     33%     35.5%  
Tax Depreciation Changes 
The 20% tax depreciation loading is removed from tax depreciation rates for fixed assets purchased after 20 May 2010.