PM signals tax reform changes

In his Statement at the opening of Parliament today, Prime Minister John Key said measures to reform the tax system would be introduced as part of the Budget in May. Any changes would be based on “equity and fairness”. Mr Key has signalled changes to the way property is taxed, changes to personal income tax rates and says further work will be done on whether the rate of GST should be increased. He also said the Government had ruled out developing any proposals for a land tax, a general capital gains tax or a risk-free return method for taxing residential investment properties. For more information see the full Statement.

Tax Working Group releases final report

Victoria University's Tax Working Group today released its final report which considers the main challenges facing New Zealand's tax system in the medium-term and suggests possible options to address them. For more information see the report and media statement.

Big year for tax treaty negotiations

Two new Tax Information Exchange Agreements were signed with Anguilla, and the Turks and Caicos Islands on 11 December bringing the total number of TIEAs signed this year to 12. For more information see the government media statement and the text of the two latest agreements.

No change to student loan repayment threshold

The income threshold at which New Zealand-based borrowers must begin repaying their student loans will remain at the current level of $19,084 for the 2010–11 tax year. The rate is reviewed each year. For more information see the government's media statement.

Tax crucial part of capital markets reform

Revenue Minister Peter Dunne has welcomed the Capital Markets Development Taskforce's report released today. The taskforce has recommended a number of changes to the tax rules so they do not distort investment choices. For more information see the media statement and the Taskforce's report.

Issues paper on income splitting released

An officials' issues paper released today looks at the idea of having income splitting between couples with children operate through an annual tax credit system, and seeks feedback on how this might work in practice. Submissions close on 5 February 2010. For more information see today's media statement and the issues paper "An income splitting tax credit for families with children".

NZ-Belgium DTA protocol signed

A protocol which updates the 1981 double tax agreement between New Zealand and Belgium was signed in Brussels earlier this week. The protocol mainly updates a number of technical areas to ensure the DTA remains relevant to the tax laws in each country. For more information see the government's media statement and the amending protocol.