It\u2019s the end of the tax year, and who has handed too much of their hard-earned money over to the Inland Revenue Department?<\/p>\n
Tax eats up anywhere between 10.5% and 39% of every dollar we earn. Yet there are legal ways to minimise the tax you pay.<\/p>\n
In New Zealand, taxes fund essential services such as healthcare, education, social welfare and infrastructure. Some people, however, pay more tax than they need to.<\/p>\n
For most wage and salary earners, tax deductions will be correct and the Inland Revenue Department\u2019s (IRD) annual automatic tax assessments will ensure that any refunds find their way into taxpayers\u2019 bank accounts automatically.<\/p>\n
See the full column here.<\/a><\/p>\n It\u2019s one thing to dream of retiring overseas, but quite another to untangle the bureaucracy, tax rules and legal minefields that come with it.<\/p>\n New Zealand Super portability and health insurance is mind-boggling, but wait until you start thinking about tax. A handful of countries, such as Malaysia, have tax-free retirement visas. But in most cases, you need to walk the tightrope between not just one complex tax system, but two.<\/p>\n Also, chances are that if you\u2019re moving overseas to retire, you\u2019ll die overseas. That might be sudden. What if you can\u2019t look after yourself? Will someone scoop you up?<\/p>\n Take advice from lawyers or trustee companies in New Zealand before you leave, and a lawyer in the country you retire to. Do you need a local will? Is there an inheritance tax in that country?<\/p>\n See the full column here. <\/a><\/p>\n For many New Zealand families, the reality of aged care arrives suddenly. In my case, a relative had a fall, spent months under Auckland Hospital care, and eventually needed to be discharged somewhere with 24\/7 support.<\/p>\n Usually a spouse or adult child ends up navigating the system, finding a rest home and understanding subsidies. Like most people, I\u2019d only thought vaguely about how this all works in practice.<\/p>\n The first thing to know is that your relative must be assessed as needing long-term care.<\/p>\n Rest home and other aged care is subsidised if the person lives on NZ Super alone and has assets below the threshold. <\/p>\n The best time to think about aged care is well before it\u2019s needed. Getting enduring powers of attorney in place is really helpful.<\/p>\nWhat should you consider before retiring overseas? Photo \/ 123rf<\/p>\n