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

28 January 2016

A new DTA signed in July 2015 between New Zealand and Samoa came into force on 23 December 2015. The new DTA with Samoa replaces the tax information exchange agreement and its associated supplementary agreement, which were both signed in 2010.

The reduced withholding tax rates under the DTA apply from 1 February 2016.

For other provisions, the agreement applies to income years beginning on or after 1 April 2016 in New Zealand, and to income years beginning on or after 1 January 2016 in Samoa.

For more information see the text of the agreement.

9 December 2015

A tax bill introduced last month passed its first reading in the House last night. The bill contains a proposed withholding tax on gains from property sales within two years by offshore sellers, an amendment to the GST rules to improve the collection of GST on services and intangibles purchased online and a proposed information exchange with Australia to improve collection of student loan repayments amongst loan borrowers living there. For more information see the media statement.

27 November 2015

Low-income working families who are eligible for the minimum family tax credit will receive an increase for the 2016–17 tax year. The MFTC currently guarantees recipients an after-tax income of $23,036 a year ($443 a week). This will increase to $23,764 a year ($457 a week) for the 2016–17 tax year, beginning on 1 April 2016.

The new rate was set by Order in Council on 23 November. For more information see the media statement.

27 November 2015

An Order in Council signed on 23 November sets the interest rate used to calculate fringe benefit tax on low-interest loans provided by employers to their employees at 5.99% for the quarter beginning 1 October 2015 and for subsequent quarters. For more information see the media statement.

19 November 2015

In his address to the New Zealand Payroll Practitioners’ Association conference, Revenue Minister Todd McClay discussed details of the Government’s newly released public consultation on policy proposals for simplifying tax administration - Making tax simpler - Better administration of PAYE and GST. For more information see the Minister’s speech.

Highlights

The recently enacted...

The Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill...

The Minister of Revenue Todd McClay today released for public consultation two sets of policy...

Last night the OECD released the finalised action plan for countering...

Two new acts, the Land Transfer Amendment Act 2015 and the Tax Administration Amendment Act 2015...