1 April 2026: What’s Changing in New Zealand Tax, Law and Business?

Every year, 1 April brings a new financial year—and with it, a mix of confirmed changes, technical tweaks and plenty of myths about “big tax reforms”.

For 2026, the changes are more targeted than dramatic. However, for employers, businesses and internationally connected clients, the impacts are real and worth planning for.

Here’s a clear summary of what’s changing—and what isn’t.

💰 Higher Minimum Wage

From 1 April 2026:

• Adult minimum wage increases to $23.95 per hour
• Starting-out and training wage increases to $19.16 per hour

What this means:
For employers, payroll costs will rise—not just for minimum-wage staff, but often across pay bands as businesses maintain wage relativity. Holiday pay, KiwiSaver and ACC costs will also increase.

🧾 ACC Earners’ Levy Increase

From 1 April 2026, the ACC earners’ levy rises from 1.67% to 1.75%.

What this means:
Employees will see slightly higher deductions from pay, and overall employment costs will increase marginally for employers.

🪙 KiwiSaver Contribution Rates Increasing

From 1 April 2026:

• Minimum employee and employer KiwiSaver contributions increase from 3% to 3.5%
• A further increase to 4% is scheduled from 1 April 2028

What this means:
This is a significant change for payroll budgeting. Employers should factor the increased KiwiSaver costs into cashflow forecasts and remuneration discussions.

🌍 Changes Affecting Migrants, Remote Workers and Foreign Income

Proposed tax law changes (expected to apply from 1 April 2026) aim to simplify rules for:

• Remote workers temporarily in New Zealand
• New migrants
• Employee share schemes
• Foreign investment fund (FIF) rules

What this means:
These changes will mainly affect internationally mobile individuals, overseas investments and multinational businesses. For some clients, compliance may become simpler—but the details matter.

If you or your staff earn overseas income, hold foreign investments, or operate across borders, tailored advice is essential.

🧑‍💻 Technical Tax and Compliance Changes

The Government is also introducing a range of technical amendments and “tidy-ups” to tax legislation and Inland Revenue processes.

What this means:
While less visible, these changes can affect filing obligations, interpretations and compliance requirements. Businesses should not assume that “nothing has changed”.

❗ What’s NOT Changing on 1 April 2026

Despite rumours and expectations:

• Personal income tax rates remain unchanged
• Company tax rate stays at 28%
• GST remains at 15%
• Trust tax rate remains at 39%

In other words, there is no sweeping tax overhaul in 2026—just incremental shifts.

📊 The Bigger Picture for Businesses

The underlying trend for 2026 is clear:

• Rising labour costs (wages, KiwiSaver, ACC)
• Targeted tax reform rather than major restructuring
• Continued focus on compliance and international tax settings

For many businesses, the biggest impact will not be tax rates—but payroll and employment costs.

✅ What Should You Do Now?

With the new financial year approaching, businesses should:

• Review payroll budgets and employment contracts
• Update cashflow forecasts for higher wage and KiwiSaver costs
• Identify any exposure to foreign income or overseas tax rules
• Seek advice before 1 April—not after

If you’d like help understanding how these changes affect your business, we’re here to help.