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

20 December 2017

Today, the Minister of Finance and Minister of Revenue announced the members to join Sir Michael Cullen on the Tax Working Group. For more information see the Ministers’ media statement.

20 December 2017

Inland Revenue’s Briefing for the Incoming Minister was published on 7 December. Also now available is a supporting document, The New Zealand tax system and how it compares internationally.

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.

Tax Working Group

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

Highlights

A tax bill which will counter base erosion and profit shifting by multinational companies has...

The Ministers of Finance and Revenue today released the Terms of Reference and named Sir Michael...