Tax Policy

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.

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.