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

13 March 2019
Tax bill passes third reading

The Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill passed its third reading yesterday, and will come into effect on 1 April 2019.

Among a host of important improvements to the Tax Administration and Income Tax Acts, the Bill simplifies how tax is assessed for Individuals by issuing tax refunds automatically. Around 750,000 extra taxpayers will likely get a refund. These new processes, when implemented, will particularly benefit those who work extra jobs and have paid too much secondary tax during the year.

The new legislation also adds two new employee* contribution thresholds to KiwiSaver (6% and 10%), and opens the scheme up to over 65s.

For more information see the Minister of Revenue's media statement.

* Note: the original news item and mailing list message said employers - this was incorrect and should have read employee. Updated 2019-03-14 at 4:15pm.

6 March 2019
SOP to tax bill about proposal to extend the Commissioner’s care and management role released

Supplementary Order Paper No. 193 to the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill was released today.

The Supplementary Order Paper reintroduces the proposal to extend the Commissioner of Inland Revenue’s care and management role, which was removed from the Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill earlier this year.

The proposed amendments provide options to resolve legislative anomalies where there are issues with tax laws that produce outcomes which are inconsistent with clear and understood policy intent. The options allow for an Order in Council to be made on the recommendation of the Minister of Revenue, and provide the Commissioner of Inland Revenue with an exemption-making power. These can be used to modify the application of tax laws, at the optional application of taxpayers, for a limited period of time, and following a period of public consultation.

For more information see the SOP, the revised departmental disclosure statement, Cabinet paper and minute, and the updated regulatory impact assessment.

4 March 2019
Minister's address to the 2019 IFA conference

The Minister of Revenue, Hon Stuart Nash, spoke at the International Fiscal Association’s conference on Friday. The Minister focussed on the Tax Working Group's recommendations and the next steps, the Government's tax policy work programme, and Inland Revenue's business transformation. For more information see the Minister of Revenue’s speech.

25 February 2019
R&D tax incentive draft guidance material now available

The Taxation (Research and Development Tax Credits) Bill is being considered by Parliament’s Finance and Expenditure Committee. This Bill proposes a new tax incentive for businesses conducting research and development.

Inland Revenue has released draft guidance, based on the Bill as introduced, to explain:

- the eligibility criteria; and
- what businesses need to do.

We’re releasing this information now so that you can tell us if the draft guidance material gives you the information you need before it is finalised.

Visit the online forum to view and comment on the draft information. You can also send feedback by email to R+Dincentive@ird.govt.nz.

As the Bill is still before Parliament, this material is subject to change. Following enactment, the final guidance material will be published on Inland Revenue's website.

20 February 2019
SOPs to the June 2018 tax bill released

Supplementary Order Papers to the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill were released yesterday.

Supplementary Order Paper No. 188 contains proposals to make directly funded disability support payments exempt from income tax, ensure that the company demerger rules are effective in providing tax relief for New Zealanders who receive shares because of a demerger by an ASX listed Australian company, add income tax, Working for Families tax credits and donation tax credits to the definition of START tax type, and broaden the grandparenting protection for certain cross border debt issued by registered banks. The SOP also contains a number of minor remedial adjustments and corrections. For more information see the revised departmental disclosure statement.

Supplementary Order Paper No. 189 proposes granting the New Zealand Memorial Trust – Le Quesnoy temporary donee status with effect from 1 April 2018 and ends three years after enactment of the Bill. For more information see the revised departmental disclosure statement, and the regulatory impact assessment.

Tax Working Group

For the terms of reference, news, reports, 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...