Employer superannuation contribution tax (ESCT) and fringe benefit tax (FBT) thresholds have changed. FBT calculation methods have also changed. From 1 April 2025, employer superannuation contribution tax (ESCT) and fringe benefit tax (FBT) thresholds will change. FBT calculation methods will also change.
What you need to do
If you haven’t yet, check that you have the most up-to-date version of your payroll software (if you use software). Your payroll software should have updates for these changes.
If you calculate ESCT yourself, the PAYE deduction tables (IR340 and IR341) have been updated and are available now.
ESCT threshold changes
An example of ESCT is an employer’s contribution to an employee’s KiwiSaver scheme. ESCT is the tax that is deducted from this contribution.
The new ESCT thresholds take effect from 1 April 2025.
| New ESCT Thresholds | Tax Rate |
| $0 – $18,720 | 10.5% |
| $18,721- $64,200 | 17.5% |
| $64,201 – $93,720 | 30% |
| $93,721- $216,000 | 33% |
| $216,001 upwards | 39% |
Employer superannuation contribution tax
FBT changes
You need to apply a new alternate tax rate calculation method for the first time. The new rate applies from 1 January 2025 and is for final quarter returns.
The new FBT thresholds take effect from 1 April 2025.
| New FBT Thresholds | Tax Rate |
| $0 – $13,962 | 11.73% |
| $13,962 – $45,230 | 21.21% |
| $45,231 – $62,450 | 42.86% |
| $62,451 – $130,723 | 49.25% |
| $130,724 upwards | 63.93% |
Fringe Benefit Tax Rates: Fringe benefit tax rates
Source: IRD https://www.ird.govt.nz/income-tax-changes
Disclaimer
Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.