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

9 July 2019
UOMI rate changes

The use of money interest rates payable on underpayments and overpayments of tax and duties are to change in line with market rates.

The rate charged on underpaid tax will increase from 8.22% to 8.35%, while the rate for overpayments of tax will decrease from 1.02 to 0.81%. The new rates will apply from 29 August 2019.

The rates are reviewed regularly to ensure they are in line with market interest rates. They were last changed in March 2017. The new rates are consistent with the floating first mortgage new customer housing rate and the 90-day bank bill rate.

The rates were changed by Order in Council on 1 July 2019.

1 July 2019
KiwiSaver bill introduced

Revenue Minister Stuart Nash introduced the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill into Parliament last Thursday.

The Bill contains proposals to simplify and modernise the administration of KiwiSaver and student loans repayments, and further improve the application of our broad-base, low-rate framework.

For more information see the Minister's media statement,* the Bill, the commentary on the Bill, and supporting documents.

28 June 2019
GST bill enacted

The Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act received Royal assent on Wednesday.

The legislation enables the collection of GST on low-value imported goods, and also includes measures to:

- ring fence losses derived from rental properties;
- require most buyers and sellers of property to provide LINZ with their IRD number;
- enable the making of regulations to temporarily address inconsistencies with tax laws;
- allow entities to keep their tax records in te reo Māori; and
- exempt some victims of sexual violence from paying child support.

For more information see the Minister of Revenue’s media statement and the new Act.

18 June 2019
SOP to tax bill – providing IRD numbers for all property transfers

Supplementary Order Paper No. 248 to the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill was released today.

It includes a proposal that would require all buyers and sellers of property to provide their IRD number as part of the transaction process. Previously, those buying or selling a main home did not have to provide an IRD number.

For more information see the Minister of Revenue’s media statement, Supplementary Order Paper No. 248, revised disclosure statement, regulatory impact assessment, and associated policy report and Cabinet papers for the collection of IRD numbers and release of the SOP.

17 June 2019
GST on low-value imported goods application date

Cabinet agreed today to give offshore businesses until 1 December 2019 to get their systems ready for the new GST on low-value imported goods measure.

For more information see the Minister of Revenue’s media statement and associated papers.

Tax Working Group

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

Information releases

We now proactively release Cabinet papers, minutes and supporting papers for tax policy related decisions. View the latest information releases.

Highlights

Pre-Budget announcements

Two pre-Budget announcements were made by the Government today.

GST on...

R&D tax bill enacted

The Taxation (Research and Development Tax Credits) Act 2019 received Royal assent yesterday....

Minister's address to the 2019 IFA conference

The Minister of Revenue, Hon Stuart Nash, spoke at the International Fiscal Association’s...