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

Tax policy news

18 January 2019

The Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill, introduced on 28 June 2018, was reported back to Parliament on Wednesday.

For more information see the bill as reported back and the officials’ report on submissions received on the bill.

20 December 2018

Australia-NZ tax treaty - administrative approach to Article 4(1) of the MLI

The Australian Tax Office and New Zealand Inland Revenue are in the process of formalising a practical administrative approach for non-individual dual residents affected by Article 4(1) of the Multilateral Convention (MLI).

Under Article 4(1) of the MLI, which is designed to address tax avoidance arrangements, non-individual taxpayers that are dual residents need to apply to either Competent Authority for a determination of their residency for tax treaty purposes.

The administrative approach will seek to provide certainty and minimise compliance costs for non-individual dual residents that meet certain eligibility criteria.

We will publish the administrative approach once it is finalised, including eligibility criteria and any additional guidance.

For more information see the note on Competent Authority determination under Article 4(1) of the MLI.

5 December 2018

Tax bill introduced

The Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill was introduced in Parliament today.

The Bill proposes that when an offshore supplier, such as a website or an online marketplace, has annual sales to New Zealanders above the $60,000 GST registration threshold, they will have to register for GST. The change would apply to imported goods valued up to $1,000 and is proposed to come into effect from 1 October next year.

The Bill also contains other measures including:
- making some income earned by student loan borrowers subject to withholding tax;
- confirming in the legislation Inland Revenue’s existing operational practice to allow businesses to keep their tax records in te reo Māori;
- ring-fencing losses on residential rental properties; and
- setting the annual tax rates for 2019–20 (which remain unchanged).

In addition, the Bill contains a number of minor policy and remedial amendments to relevant tax Acts to maintain the integrity and efficiency of the tax system.

For more information see:
- the Minister’s media statement;
- the Bill as introduced;
- the commentary on the Bill; and
- the regulatory impact assessments.

25 October 2018

R&D tax bill introduced

The Minister of Research, Science and Innovation introduced the Taxation (Research and Development Tax Credits) Bill today.

The Bill includes the proposed legislation for the Government’s R&D tax incentive package, previously announced on 3 October 2018.

For more information see the Ministers’ media statement, the Bill, commentary on the Bill, and regulatory impact assessment.

18 October 2018

Proposed new rules for GST on low-value imported goods announced

In his speech today at the Chartered Accountants Australia New Zealand tax conference, the Minister of Revenue announced proposed new rules for GST on low-value imported goods.

The proposed changes would require offshore suppliers to register, collect, and return New Zealand GST on goods valued at or below $1,000 that are supplied to consumers in New Zealand. A bill amending the GST Act will be introduced this year, with the changes expected to come into effect from 1 October 2019.

For more information see the Minister’s media statement, a fact sheet, and questions and answers.

Tax Working Group

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

Highlights

R&D tax bill introduced

The Minister of Research, Science and Innovation introduced the Taxation (Research and...

R&D tax incentive package announced

The Government announced its R&D tax incentive package this morning.

Key...

Budget 2018

Finance Minister Grant Robertson’s 2018 Budget contains the following tax-related...