IRD support when you’ve had a significant drop in income

Working for Families

Do you have a dependent child? You may qualify for Working for Families payments. Already getting payments? If your annual family income has dropped, you may be entitled to more money, though this will depend on your particular situation. To update your records, go to your Working for Families account in myIR and select ‘Family and income details’.

Student loans

If you’re an employee experiencing hardship, you can apply for lower repayments. Go to your student loan account in myIR and select ‘Apply for a reduced deduction rate’. If you’re self-employed, IRD can reduce your student loan assessments. To apply, send a message in myIR.

KiwiSaver

You may be able to take a break from making KiwiSaver contributions. Go to your KiwiSaver account in myIR and select ‘Apply for a savings suspension’. You may be eligible to withdraw KiwiSaver savings early if you are experiencing financial hardship. Contact your KiwiSaver provider to discuss your options.

Child support (paying parents)

If your income has dropped by 15% or more, you can ask us to reduce your child support payments. Go to your child support account in myIR and select ‘Child support change of circumstances’.

Tailored tax options

If your income drops, you can apply for a tailored tax code, tailored tax rate, or a certificate of exemption. Using 1 of these options may help you pay the right amount of tax every payday, rather than possibly having a big tax bill or big refund at the end of the year. ird.govt.nz/tailored-tax-code

Estimate or re-estimate your provisional tax

A drop in income may mean you can pay less provisional tax. To re-estimate your provisional tax, go to ird.govt.nz/prov-tax-estimate

Tax relief options

If you have overdue tax, and immediate full payment will cause you serious hardship, you can set up an instalment arrangement to repay the money in manageable amounts over time. Log in to your myIR account, select ‘I want to ...’ then ‘Request an instalment arrangement’. IRD will stop charging late payment penalties if you keep to the arrangement. In some cases, they may be able to write off some of your debt. You can apply for tax relief in myIR. Log in to your myIR account, select ‘I want to...’, then ‘Register, application and enrolment’ then ‘Application for relief’.

Remember your tax advisor

Your tax advisor (accountant, bookkeeper, lawyer) or business mentor understands you and your business. They’re a good resource for independent advice.