JULY--1st----Today's changes that could affect your bank account
The start of July brings a raft of changes that will affect households across the country.
From prescription changes to mortgage tweaks, the rules, fees and taxes will affect the way that many people spend and borrow money.
Here are a few of them.
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Debt-to-income ratios and loan-to-value restriction tweaks
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New debt-to-income rules will limit how much banks can lend to borrowers, compared to their household income.
Only 20 percent of lending can go to owner-occupier buyers with a debt-to-income ratio of six, and only 20 percent of investors loans will be able to be at a debt-to-income ratio of more than seven.
The debt-to-income calculation takes into account other debt, such as student loans.
These rules are not expected to make a big difference initially, because not much lending is currently being done above those levels. However, they are likely to limit the extent of future house price growth.
At the same time, loan-to-value rules will be eased slightly to allow banks to give 20 percent of lending to owner-occupier borrowers with a deposit or equity of less than 20 percent, and 5 percent of lending to investors with a deposit or equity of less than 30 per cent.
Previously, they could only lend 15 percent to owner-occupiers with less than 20 percent deposit and 5 percent of lending to investors with less than 35 percent.
Prescription charges
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A $5 charge is coming back on for prescriptions.
This does not apply to people who are over 65, Community Services Card holders, people who are under 14 or people ages 14 to 17 who are dependent on a Community Services Cardholder.
Auckland regional fuel tax abolished
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The Auckland Regional Fuel Tax scheme ended on 30 June.
This is worth 11.5c per litre on petrol, diesel and their biovariants.
FamilyBoost introduced
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The FamilyBoost policy takes effect from 1 July, offering a payment of 25 percent of early childhood education fees for households up to $75 a week.
This is available in full to households earning up to $140,000 and reduces for those earning up to $170,000.
Households should start saving their invoices from 1 July as either PDF or JPG files, Inland Revenue says.
Payments will be made in three-monthly blocks, starting in October.
Bright-line test reduced
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From 1 July, the bright-line test will reduce to two years, from the current 10 years, or five for new builds.
The bright-line test sets a limit on how long properties, apart from someone's main home, have to be held to avoid tax on capital gains when they are sold.
That means that properties sold on or after Monday now need to have been held for at least two years to avoid the automatic tax.
Chartered Accountants Australia and New Zealand is warning there could be some confusion, though, because the new rules focus on the "disposal" date of a property rather than the acquisition date.
"Care needs to be taken as the dates are determined differently. The bright-line end date is determined by when the seller first enters a contract for sale, whereas the start, or acquisition date is typically determined when title transfers."
He said that could mean that anyone who had entered negotiations before 1 July could still be captured under the old rule.
Paid parental leave increases
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Each year, the maximum amount of paid parental leave available increases.
How much you get is determined by how much you were earning before you went on leave.
From 1 July, the maximum is $754.87 a week before tax, compared to $712.17 previously.
Gaming duty for offshore operators
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From 1 July, a 12 percent offshore gambling duty applies operators who are taking bets from New Zealand residents.
Offshore gambling operators have to register for GST if they make more than $60,000 in a 120-month period. Those that are registered for GST must also now register for the duty.
Excise tax on alcohol increases
The annual adjustment of excise tax on alcohol takes place on 1 July. This is based on movements in the consumer price index in the year to March.
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Poll: Is it rude to talk on the phone on a bus?
Buses can be a relaxing way to get home if you have a seat and enough space. However, it can be off-putting when someone is taking a phone call next to you.
Do you think it's inconsiderate for people to have lengthy phone calls on a bus? Vote in the poll, and add your comments below.
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64% Yes
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33.7% No
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2.3% Other - I'll share below
Tips on Accelerating Your Comfort Level with a New Mattress
Getting started on the quest for the perfect night’s sleep with a new mattress can be exciting, but it often requires a period of adjustment.
If you've recently invested in a new mattress and are wondering about the time frame for adjustment, you're not alone.
Understanding the typical adjustment period can greatly improve your sleep health and ensure you get the most comfort out of your new bed.
The Personal Touch: Individual Variation in Adjustment
When it comes to adapting to a new mattress, there's no one-size-fits-all answer.
The mattress adjustment period can vary significantly depending on a number of personal factors.
Age, health, and even your usual sleep position can influence how quickly you adjust.
Generally, most people take anywhere from a few days up to a month to fully adapt to their new sleeping environment.
During this time, your body is acclimating to the support and feel of the mattress, which may differ significantly from your old one.
Understanding Mattress Types and Their Impact
The type of mattress you choose also plays a crucial role in your adjustment period.
Memory foam, for instance, may require a longer adjustment period as it contours more significantly to your body compared to a traditional spring mattress.
On the other hand, hybrid mattresses—a combination of foam and springs—offer a balance of support and cushioning, which might ease the adaptation process.
Tips for a Smoother Transition
Adapting to your new mattress is not just about waiting it out; there are active steps you can take to make the process smoother:
Maintain a consistent sleep schedule. Going to bed and waking up at the same time every day sets your body’s internal clock, which can help reduce the adjustment time.
Create a comfortable sleep environment. Ensure your bedroom is conducive to sleep—consider factors like temperature, light, and noise.
Give it time. Even if your new mattress feels different or not quite right initially, give it a few weeks, as initial discomfort is common.
Exploring more about how to enhance your sleep environment for a comfortable sleep, you can check out Beds4U Bedding.
Recognizing the Signs of Successful Adjustment
How do you know if you're well-adjusted to your new mattress?
Look for positive changes in your sleep quality and health.
You should experience less tossing and turning, fewer awakenings through the night, and reduced morning stiffness or soreness.
Increased sleep quality and waking up feeling rested are clear indicators that your body has adapted to the new mattress.
Comfort with Confidence
Adjusting to a new mattress is a unique experience that varies from person to person.
By understanding your needs and the characteristics of different mattress types, along with employing tips to aid the transition, you can enhance your sleep quality significantly.
Remember, a good night's sleep is crucial for your overall health and well-being.
At Beds4U, we are committed to helping you find that perfect sleep solution.
With a wide range of high-quality mattresses and a knowledgeable team eager to assist, finding your ideal comfort is just a visit away.
Explore our latest collections and sales at Beds4U and start enjoying a more comfortable sleep tonight.
What's your favourite recipe for gooseberry?
Love gooseberries? Share your favourite way to enjoy them. We're looking for our readers' favourite family recipes for this delicious crop. Send yours to mailbox@nzgardener.co.nz, and if we use it in the magazine, you will receive a free copy of our December 2024 issue.
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