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

18 September 2019

New Zealand has signed a protocol amending the Tax Information Exchange Agreement (TIEA) with Guernsey. The protocol updates the TIEA to include model treaty provisions to prevent tax treaty abuse and improve dispute resolution as recommended by the OECD and G20. The agreement will come into force once both countries have given it legal effect. For more information see the text of the Protocol.

16 September 2019

The rules that tax certain sales of land contain exclusions from tax for people who use that land as their main home, residence or business premises. However, these exclusions are not meant to apply where the taxpayer has a “regular pattern” of buying and selling land used as a main home, residence or business premises.

A tax policy consultation document, Habitual buying and selling of land, was released today because there are concerns that the current regular pattern restrictions are not working as intended. The document discusses those concerns and proposes possible solutions. Submissions close on 18 October 2019.

23 August 2019

The Minister of Revenue intends to introduce a remedial amendment to clarify that payments for the grant of a land right (such as a licence) are taxable. For more information see the Minister of Revenue's media statement.

15 August 2019

A special report providing early information on the new rules applying to “distantly taxable” goods supplied to consumers in New Zealand is now available. This includes the requirement for offshore suppliers, electronic marketplaces and redeliverers to return GST on low-value goods such as books, clothing, cosmetics and shoes.

The new rules come into force on 1 December 2019, and are part of the Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Act. Full coverage of the new Act will be published in the September 2019 edition of the Tax Information Bulletin.

13 August 2019

Supplementary Order Paper No 293 to the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill was released today by the Minister of Commerce and Consumer Affairs, Hon Kris Faafoi.

The SOP proposes changes to the KiwiSaver Act to allow a person that has a life-shortening congenital condition to withdraw their savings early.

For more information see:
- the Minister of Commerce and Consumer Affairs's media statement (from 21 July);
- Supplementary Order Paper No 293;
- the revised disclosure statement;
- the regulatory impact assessment (PDF 1.1 MB); and
- supporting documents.

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

Two pre-Budget announcements were made by the Government today.

GST on...

The Taxation (Research and Development Tax Credits) Act 2019 received Royal assent yesterday....

The Minister of Revenue, Hon Stuart Nash, spoke at the International Fiscal Association’s...