IRD made several changes that take effect during the 2026 income year. Most of the news cycle ignored them. Here is the short version of what you actually need to know.
Trustee tax rate stays at 39%
For trusts other than those with under $10,000 of taxable income. If you have a trust earning more than $10k a year in interest, dividends, or rental net income, expect a higher tax bill than the 2024 year.
We run a 2026 trust tax forecast for every trust client during the standard pre-year-end review. If you are a trustee and have not had one of those conversations yet, get in touch.
Brightline rule clarifications
The two-year brightline that came in on 1 July 2024 continues to apply. New IRD guidance in 2026 clarifies the treatment of inherited property and transfers between family trust beneficiaries.
If you are selling or transferring residential property in 2026, talk to us first. The brightline can be triggered by surprisingly small changes like restructuring a family trust or transferring between siblings as part of an estate.
Investment Boost continues
The 20% deduction on the cost of new productive assets introduced in Budget 2025 continues into 2026.
For Growth and Comprehensive clients we have been claiming this through the year on monthly bookkeeping. For annual-only clients it gets caught at year end. Either way, do not buy a new ute or commercial fit-out without flagging it to us.
Family Boost continues
The Family Boost early childhood education rebate continues into the 2026 income year. You claim it directly through myIR. We do not lodge it; you do. Ask us if you are unsure whether you qualify, but the form itself takes ten minutes.
Digital services tax: still a backstop, not a live tax
The NZ Digital Services Tax bill is on the books but its commencement can be deferred for up to five years (latest possible start date 1 January 2030) while the OECD Pillar One multilateral solution progresses. In practice that means the DST is the contingency plan, not the live regime.
Small direct impact for most NZ businesses; we mention it because clients keep asking. If you sell digital services to NZ end users at scale (the Googles and Metas of the world) this matters; otherwise it does not.
What you should actually do
- Trust clients: book the 2026 forecast review now if you have not
- Property owners selling or restructuring in 2026: get a brightline check before signing anything
- Anyone buying productive assets in 2026: keep the invoices clean and flag big purchases to us early
- Parents with kids in ECE: log into myIR and check Family Boost yourself, it really does take ten minutes