Understanding the New NZ Trust Tax Landscape
Recent tax changes in New Zealand have sparked concern among trust investors, as reported by Stuff.co.nz in their article “Strategies to optimise your money in new tax changes.” The increase in the trust tax rate from 33% to 39% has many seeking tax-efficient alternatives to protect their returns.
Existing Norfolk Mortgage Trust investors: Rest assured, your investments are unaffected by the recent tax hikes. You already enjoy a maximum tax rate of 28%. However, if you hold trust investments outside of Norfolk, this update may be highly relevant as the new rates could have a negative impact on your investment returns.
The Impact on Trusts and Investors
These tax changes aren’t just numbers on a page; they affect real people and their investments. Thousands of NZ trusts will feel the pinch, prompting discussions among trustees, tax advisors, and industry experts. Concerns have been raised about over-taxation and increased financial burdens. This highlights the need for proactive decision-making to navigate this new terrain smoothly.
Let’s Talk PIEs: A Strategic Shift for Trust Tax Savings
Amidst these changes, a strategic shift towards Portfolio Investment Entities (PIEs) emerges as a tax-efficient investment option. Consider this:
PIE-structured funds can save you up to 40% in taxes compared to other trust investments. A significant advantage!
PIEs offer a smart move for those looking to simplify tax management and maximise returns.
Norfolk Mortgage Trust: Your Tax-Efficient PIE Partner
At Norfolk Mortgage Trust, our investors enjoy the benefits of a PIE structure, including:
- Maximum tax rate of 28%: Significant tax savings compared to the new 39% rate for trusts.
- Simplified tax handling: No complex calculations. Each month, tax is automatically deducted from your returns.
- Consistent monthly returns: Earn consistent income at a level higher than bank deposits, and competitive with similar investment products, to grow your wealth over time.
Don’t Let Tax Changes Erode Your Returns
Whether you’re looking to grow and diversify your investment portfolio or start one, our results showcase the stability and strong performance we’re committed to providing.
Worried about the impact? Schedule a free consultation to discuss your trust structure and explore PIE options with our team of experts.
Ready to protect your returns? Learn more about Norfolk Mortgage Trust, the tax-efficient PIE solution that puts your financial goals within reach. Contact us today for a friendly chat about how we can help you navigate the new trust tax landscape with ease.
Watch our short video [click to view] to learn more about how the Trust works and what you can expect from your investment.
For more information and the opportunity to discuss Norfolk’s approach to investing contact Norfolk Mortgage Trust today.