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

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.

17 October 2018
SOP to June tax bill on bloodstock changes released

A Supplementary Order Paper released yesterday proposes changes to the tax treatment of bloodstock for inclusion in the Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill, introduced into Parliament on 28 June 2018 and currently at the select committee stage.

For more information see the Minister for Racing’s media statement, Supplementary Order Paper No. 135, the updated Bill disclosure statement, and the regulatory impact assessment.

3 October 2018
R&D tax incentive package announced

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

Key features include:

- a credit rate of 15%;
- a $120 million cap on eligible expenditure;
- a minimum R&D spending threshold of $50,000 per year; and
- a limited form of refund in its first year that mirrors Inland Revenue’s tax-loss cash out scheme (to be replaced by a more comprehensive approach in the scheme’s second year).

A Bill is planned for introduction into Parliament later this month or in early November.

For more information see the Ministers’ media statement and the Ministry of Business, Innovation & Employment’s website.

Tax Working Group

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

Highlights

Budget 2018

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