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Q:
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What is GST?
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A:
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Goods and services tax (GST) is a tax on most goods and services in New Zealand. It is a tax that companies collect on behalf of the government.
Prior to 1 October 2010, GST is added to the price of taxable goods and services at the rate of 12.5%. However, from 1 October 2010 the GST rate will increase to 15%.
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Q:
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When will I see a change in GST on my bill?
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A:
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All bills dated from 1 October 2010 will have a GST rate of 15% applied. Your first bill dated on or after 1 October may include consumption from before October; it is a government mandate that all bills dated from 1 October 2010 have 15% GST applied.
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Q:
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Do I need to change my SmoothPay payments?
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A:
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No, there is nothing you need to do.
We already review your account every four months to check your regular payments are consistent with the amount of energy you’re using. As part of this review, we will take into account the increase in GST. If your payments need to be adjusted, we will contact you at the time of your next review and provide you with at least 10 days notice before a new payment is deducted from your bank account.
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Q:
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I have an outstanding balance with Empower. Will I be charged a higher GST rate for the outstanding amount?
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A:
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The GST rate applied to your outstanding balance depends on when the outstanding balance was originally invoiced. If the outstanding balance was originally invoiced before 1 October 2010, your outstanding balance will already include 12.5% GST.
If you pay your energy bill via our SmoothPay payment option, please see Do I need to change my SmoothPay payments?
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Q:
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Will the new GST rate affect my prompt payment discount?
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A:
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Your prompt payment discount rate will remain the same.
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Q:
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Where can I get more information on the GST change?
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A:
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For more information, please visit the Inland Revenue Department website
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