An End to Unnecessary Second Tax
May 15, 2019
Any hospitality workers affected by paying extra tax on their second job will be excited to hear that the Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters Bill passed its third reading and came into effect on 1 April.
“We promised to eliminate unnecessary secondary tax for workers with more than one job. We are delivering on that promise,” says Revenue Minister Stuart Nash.This means that the 600,000 people who use secondary tax codes every year will have the opportunity to apply for tailored tax codes to suit their individual situations and put an end to casual workers paying too much tax.
Previously, employees in New Zealand had to pay tax at a different rate on their secondary income source resulting in many employees paying a higher rate of income tax during the year. They could then claim the extra back at the end of the tax year however, the new changes mean these employees will have the difference paid into their pockets during the year rather than wait to claim it back. In 2016 it was estimated that $750million was overpaid.
"This change will make the process easier and pretty much automatic for those who have to work more than one job" (spokesperson for Revenue in New Zealand). This is great news for the casual hospitality workforce who currently have more than one job to build up hours or those interested in working Rockstar (one-off shifts) to earn extra money.
Barcats Rockstar service allows hospitality staff the opportunity to work last-minute shifts whether it be front or back of house, now without worrying about the added pressure of paying extra tax on the earnings. Create a profile today and turn on Rockstar availability to access part-time and one-off hospitality jobs near you.