You may have caught the news last week that the IRD are planning changes to change Resident Withholding Tax (RWT) changes from April 2010. Following on from the Individual Income Tax changes that went through in April of this year, RWT rates would change and come into line with the marginal income tax rates.
Like all things there are pros and cons.
If you are currently on an RWT rate of 19.5%, but then end up on the new rate of 21%, clearly not a good thing. However if you go down to the 12.5% RWT that's a significant benefit, particularly for those retired persons who need to derive an income from their savings. Plus there is always the upside associated with standardising things. I'm sure people struggle with the differences between RWT and Individual Income Tax … at least this move goes someway to making matters clearer.
Have a read of what was reported about this on Stuff last week.