Tax Policy, Inland Revenue | News and information about the Government's tax policy work programme

Tax policy news

27 March 2020

The Government intends to introduce legislation to ensure that farmers whose herds were culled in response to the Mycoplasma eradication programme will not face an undue tax burden.

The proposed changes will be included in a future tax bill and would apply from the 2018 income year, as culls began in late 2017. As the proposals have not yet been through the Parliamentary process, they are subject to change.

For more information see the Minister of Revenue's media statement and fact sheet.

26 March 2020

KiwiSaver Bill enacted

The Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill received Royal assent on Monday, after completing the final stages of the Parliamentary process last week.

For more information see the Act.

26 March 2020

COVID-19 tax bill enacted

The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill passed through all stages in Parliament yesterday, and also received Royal assent.

For more information see the Minister of Revenue’s media statement and the Act.

25 March 2020

COVID-19 Bill passes through all stages

The Government’s Bill introduced under urgency today, has now passed through all stages. The Bill, which is part of the Government’s economic response to the pandemic, includes targeted measures aimed at providing relief to those that have been economically affected by the coronavirus. The Bill also includes measures aimed at addressing the broader economic impacts of the outbreak. The main features of the Bill include:

• Restoring building depreciation.

• Increasing the provisional tax threshold to remove smaller businesses from the provisional tax regime.

• Allowing immediate low-value asset write offs for more assets.

• Bringing forward broader R&D refundability.

• Allowing use of money interest to be waived.

• Allowing greater information sharing with a wider group of government agencies to assist the efficient and effective delivery of the Government’s COVID-19 response; and

• Allowing wider access to the in-work tax credit.

For more information see the Bill, the commentary, and disclosure statement.

24 March 2020

No GST on leave or wage subsidies

An Order in Council has been made which confirms that the leave payment and wage subsidy announced as part of the Government’s Economic Response Package to COVID-19 would not attract GST.

Generally, GST-registered businesses receiving Government grants and subsidy payments are required to return GST on payments received. This Order adds these payments to the schedule of non-taxable grants and subsidies.

For more information see the Order in Council.

Tax Working Group

For the terms of reference, news, reports, and other information see the Tax Working Group's website.

Information releases

We now proactively release Cabinet papers, minutes and supporting papers for tax policy related decisions. View the latest information releases.

Highlights

Consultation on proposed changes to unclaimed money

Feedback is sought on proposals to more efficiently administer unclaimed money – proposals...

Tax bill reported back

The Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill,...

Government to clarify donation tax credit rules

Today Revenue Minister Stuart Nash announced that the Government would move to restrict the...