Key Changes from Inland Revenue from 1 April 2026
A number of important Inland Revenue (IRD) changes have come into effect from 1 April 2026. These updates will impact payroll, business costs, and compliance requirements for many New Zealand businesses.
Understanding what’s changed — and what it means for you — is key to staying compliant and avoiding unnecessary costs.
Key Payroll and Employer Changes
Several updates directly affect wages, payroll systems, and employer obligations:
KiwiSaver Contribution Rates
The default minimum contribution rate has increased from 3% to 3.5% for both employees and employers. This will increase payroll costs and should be factored into your budgeting.
Minimum Wage Increase
The adult minimum wage has risen to $23.95 per hour, impacting wage costs across many industries.
ACC Earner Levy
The ACC earners’ levy has increased to $1.75 per $100 of liable earnings (up from 1.67%).
The maximum earnings threshold has also increased to $156,641.
KiwiSaver for 16–17 Year Olds
Employees aged 16 and 17 who are enrolled in KiwiSaver are now eligible for compulsory employer contributions — an important change for businesses employing younger staff.
Temporary KiwiSaver Rate Reduction
Employees can apply to temporarily reduce their KiwiSaver contribution rate back to 3% for a period of 3–12 months, starting from April 2026.
Fringe Benefit Tax (FBT) on Reimbursements
Employers now have the option to treat certain reimbursements as subject to PAYE or FBT, providing more flexibility — but also requiring careful consideration to ensure compliance.
Income Tax and Social Policy Changes
There are also broader changes that may affect employees and their entitlements:
Best Start Payments
For children born on or after 1 April 2026, Best Start payments will now be income-tested from the first year.
In-Work Tax Credit
Eligible families will receive a temporary increase of $50 per week (up to $147), effective until 31 March 2027.
Working for Families Adjustments
Changes to how benefit income is calculated aim to reduce the risk of overpayments.
Crypto-Asset Reporting
New Zealand-based crypto service providers must now collect and report customer information under the Crypto-Asset Reporting Framework (CARF), with reporting due by 30 June 2027.
IRD Number Validation
The maximum valid IRD number has increased to 200,000,000. If your systems use custom validation rules, these may need updating.
Increased Compliance Expectations
IRD is taking a firmer approach to compliance:
Stricter debt collection on overdue PAYE and GST
Faster escalation to enforcement action where obligations are not met
In addition, incorporated societies must re-register by 5 April 2026 to retain their legal status and IRD number.
What This Means for Your Business
These changes are likely to result in:
Increased payroll and employment costs
Updates required to payroll and accounting systems
Greater compliance pressure from IRD
A need for proactive cashflow and business planning
Now is the time to review your processes, ensure your systems are up to date, and understand how these changes impact your bottom line.
How We Can Help
Staying on top of regulatory changes can be challenging — especially when they directly impact your cashflow and compliance.
At Cross Group, we work alongside you to ensure your business is prepared, compliant, and positioned to move forward with confidence.
Don’t get left behind in a rapidly changing environment.
Get in touch with our team today to discuss how these changes affect your business and what steps you should be taking now.