Business Accountants: Understanding the New Regulations for App Tax: Implications for Property Owners


App Tax Regulations: What Property Owners Need to Know

The recent decision by the incoming coalition government to retain the app tax regulations has left many property investors surprised. Originally scheduled for repeal, these regulations, also known as the platform economy GST rules, will remain in effect, impacting businesses like Uber and Airbnb.

Implementation and Scope

Enacted in March last year, the regulations are set to take effect from April 1, 2024. They target “listed services,” including accommodations and ride-sharing services provided in New Zealand. Unlike previous arrangements where individual property owners bore the GST obligation, the new rules shift this responsibility to platforms like Uber and Airbnb.

Key Changes and Implications

Under the new rules, two supplies are identified: the first from individual property owners to the platform and the second from the platform to the public. Property owners falling below the $60,000 GST registration threshold will receive a flat-rate credit from the platform. However, those exceeding the threshold will have their first supply zero-rated, enabling them to claim GST input tax credits.

Opt-Out Provisions and Considerations

Certain suppliers have the option to opt out of the rules, including those with turnovers exceeding $500,000 and accommodation providers listing more than 2,000 nights’ accommodation annually. However, the decision to opt out requires careful consideration of potential implications.

Opportunities and Challenges Ahead

While the regulations aim to streamline GST reporting for businesses like Uber and Airbnb, property owners, particularly those in the Airbnb market, may face challenges. The two-supply structure could lead to unforeseen tax implications, especially for high-value assets like holiday homes.

Leveraging Opportunities for Compliance

Despite challenges, property owners may capitalize on opportunities provided by the revised GST Act. By meeting specific criteria, assets primarily used for personal purposes, such as holiday homes let out via Airbnb, may be removed from the GST net.

The retention of the app tax regulations underscores the government’s commitment to fairness and equity in the platform economy. As property owners navigate these changes, understanding the implications and exploring available opportunities will be crucial for compliance and long-term financial planning.



Your Outside Team



Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business. 




Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Restaurant Accountants | Cafe Accountants | Business Consultation | Business Adviser

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Understanding Changes in Residential Property Taxation

Recent years have seen significant adjustments to the tax landscape, particularly concerning residential property. The government has responded to calls from various quarters to address investor demand in this sector. Notably, recent changes have been initiated to reverse tax policies affecting residential property, aligning with promises made by both National and ACT during their election campaigns.

Read More »
New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: GST on Housing: Avoid Surprise Tax Bills

As we approach May 2024, it’s crucial to address potential GST pitfalls when selling property. Over the past decade, there have been instances where property sellers, unaware of GST implications, faced unexpected tax bills, especially those converting residential properties into holiday rentals or using them for business.

Read More »