Inland Revenue - Tax policy Tax Policy

News and information about the Government's tax policy work programme, including:
- proposed changes to the laws that Inland Revenue is responsible for
- updates on the progress of bills through Parliament
- policy announcements

Tax policy news

15 December 2017

Parliament passed the Families Package (Income Tax and Benefits) Bill on Friday evening. The Bill contains measures that support the Government’s aim of providing more targeted assistance to low and middle income families with children. The Bill now awaits Royal assent.

14 December 2017

A Bill to provide more assistance to families was introduced into Parliament today.

The Families Package (Income Tax and Benefits) Bill includes measures to support the Government’s aim of providing more targeted assistance to low and middle income families with children.

The measures include:

– repealing the tax cuts and changes to Working for Families tax credits announced in Budget 2017;

– increasing the Family Tax Credit and raising the abatement threshold;

– introducing a Best Start payment of up to $60 per week per child to help families with costs in a child’s early years;

– introducing a Winter Energy Payment to help superannuitants and beneficiaries heat their homes over the coldest months;

– reinstating the Independent Earners’ Tax Credit; and

– implementing the Accommodation Supplement and Accommodation Benefit increases announced in Budget 2017.

This Bill follows the recently enacted extension to paid parental leave of 26 weeks by 2020.

For more information see the summary of the Families Package (Treasury's website), the fact sheet for the Families Package (the Beehive website), the Bill, and the regulatory impact assessment (PDF 292 KB) (Treasury's website).

[Updated with direct links to the Families Package information at 5:55pm.]

6 December 2017

A tax bill which will counter base erosion and profit shifting by multinational companies has been introduced into Parliament today. The Taxation (Neutralising Base Erosion and Profit Shifting) Bill contains measures which will prevent multinationals from using:

– artificially high interest rates on loans from related parties to shift profits out of New Zealand;

– hybrid mismatch arrangements that exploit differences between countries’ tax rules to achieve an advantageous tax position;

– artificial arrangements to avoid having a taxable presence in New Zealand; and

– related-party transactions to shift profits into offshore group members in a manner that does not reflect the actual economic activities undertaken in New Zealand and offshore.

For more information see the Minister of Revenue's media statement [added 7 December 2017], the bill, commentary on the bill and regulatory impact assessments.

23 November 2017

The Ministers of Finance and Revenue today released the Terms of Reference and named Sir Michael Cullen as Chair of the Government’s Tax Working Group. For more information see the Ministers’ media statement.

17 November 2017

In his opening address to the Chartered Accountants Australia and New Zealand tax conference yesterday, Revenue Minister Stuart Nash outlined the Government's 100 day priorities for the tax system. He also discussed some of the challenges facing the tax system in the future. For more information, see the Minister's speech.

Highlights

The Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial...

The Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Bill...

The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill introduced in...

The Government has released its response to the recommendations from the...