Changes for the 01 April 2021 - 31 March 2022 Tax Year.
Student Loan or ESCT calculations will be applied to pay dates after 01 April 2021.
ACC Earner levy has NOT changed for 2021-22
The ACC Earner Ley rate remains at 1.39% and threshold is $130,911
New tax codes SA and SA SL
Two new secondary tax codes.
These new tax codes will be available to select for any employee that has a start date or paid to dates after 01 April 2021.
The tax rate is 39% + 1.39% Earner Levy (so 40.39% total) and will be chosen by secondary earners who expect to earn over $180,000 for the year.
New step on primary tax codes
Primary tax codes (M, M SL, ME and ME SL) have a new step added.
- Taxable annual income is between $70,001 and $180,000 - 33%
- Taxable annual income is greater than $180,000 - 39%
New high rate to calculate Lump Sum or extra pay amounts
When calculating tax on extra pay, if the annualised earnings are calculated to be over $180,000 the extra pay tax rate is 39%.
New top ESCT rate
The highest ESCT rate from 01 April 2021 is 39% for people who expect to earn over $216,000 for the tax year.
This new rate will be automatically used when the system updates the ESCT rates during the opening of the first pay for the 2021-22 tax year. From 01 April 2021 it will also be available for users to select as an override rate.
Student Loan repayment threshold increase
The student loan repayment threshold has been increased slightly from $20,020 to $20,280. This means that an employee needs to have annualised earnings of at least $20,280 before student loan repayments are calculated.
Weekly earnings excluded from Student Loan is now $390.00
Fortnightly earnings excluded from Student Loan is now $780.00
Monthly earnings excluded from Student Loan is now $1690.00