April Newsletter
- Sasha Curin
- May 4
- 3 min read
Tax Changes, Loan Deadlines, and Debt Recovery Initiatives You Should Know
As we settle into the 2025 tax year, there are several important updates to keep in mind. From tax threshold adjustments and increased levies, to changes affecting property owners and small business borrowers.
In this edition, we’re highlighting the key changes that took effect on 1 April, the upcoming Small Business Cashflow loan repayment deadline, and Inland Revenue’s new approach to helping customers manage smaller tax debts. Provisional tax is also due on 7 May, so be sure to check if this applies to you.
Provisional Tax Due 7th May 2025
The third and final instalment of provisional tax for the 2025 tax year is due on Tuesday, 7 May. If you’re unsure of how much to pay or whether this applies to you, please get in touch with us. We’re here to help you avoid any late payment penalties or interest.
Summary of Recent Updates
SBC Loan Repayment Deadline Approaching
The final repayment date for the Small Business Cashflow (SBC) loans is just around the corner. These loans were introduced in May 2020 to support businesses hit by COVID-19, with more than 129,000 businesses borrowing a total of $2.4 billion.
From June 2025, Inland Revenue will begin defaulting on loans not yet repaid. This means borrowers could face additional charges, including default interest based on the UOMI rate plus a 3% margin. Around $953 million remains outstanding, and roughly 10,000 loans are already in default.
IR is actively contacting those in arrears and urging them to check their repayment plans through their myIR account or reach out for help if their situation has changed.
Reminder: Tax & Payroll Changes 1st April
Summary of Changes:
• ACC earners’ levy increases from 1.60% to 1.67%
• Minimum wage increases to $23.50 per hour
• Full mortgage interest deductibility reinstated for residential rental properties
• Updated personal income tax thresholds now apply across the full 2025 tax year
• New ESCT and FBT thresholds and tax rates take effect from 1 April 2025
New Pilot Aims to Tackle Small Tax Debts
Inland Revenue has launched a five-month pilot programme using Baycorp to contact taxpayers with debts under $5,000. This initiative aims to prevent penalties and interest from piling up and help more people resolve smaller debts quickly and securely.
Baycorp will reach out via email, text, and phone, guiding people through self-service options or referring them to IR where needed. No bank details, passwords, or urgent demands will be made - helping ease concerns about scams. Only essential information is shared with Baycorp, and strict privacy safeguards are in place.
13 Tactics for Winners: A Tip to Succeed
We’ve created a guide called “13 Tactics for Winners” to help you succeed in business and life. It’s packed with practical advice on setting goals, staying motivated, and overcoming challenges.
This month, we’re highlighting one tactic from the guide to get you started:
This Month's Tactic: Set Challenging Goals
Success comes from stretching beyond your comfort zone. As Walt Disney said, "If you can dream it, you can do it." The real risk isn't aiming too high and falling short – it's aiming too low and achieving less than your potential.
Ask yourself:
Do your goals inspire and slightly frighten you?
What would you need to do to achieve something extraordinary?
We'll share another tactic next month to keep you inspired. If you'd like to explore all 13 tactics now, you can download the full guide below:
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Important Upcoming Dates:
7th May
GST Return & Payment Due for period ending 31st March
Provisional Tax Due if you have a March balance date
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