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

Consultation

The Government is seeking feedback on proposals set out in the discussion document Making tax simpler - Better administration of social policy.

The proposals include:

- basing Working for Families on recent income (rather than estimates);

- making it easier to repay overpayments, for example, by deducting any overpayment from future payments;

- calculating child support using more recent income from both parents, and taking into account all income earned, with employers making compulsory deductions for child support for all liable parents; and

- helping some New Zealand-based borrowers manage their student loan repayments better.

The proposals are part of Inland Revenue’s business transformation. The proposed changes would build on legislation currently going through Parliament that would see Inland Revenue receiving income information from employers and banks more quickly.

For more information see the online forum at www.makingtaxsimpler.ird.govt.nz.

Consultation closes on Friday 15 September 2017.

The Government is seeking feedback on proposals set out in the discussion document Making tax simpler - Better administration of individuals’ income tax.

The main proposal is that fewer individuals, who receive income only from salary, wages, interest or dividends, would have to provide year-end income information to Inland Revenue.

Inland Revenue would automatically calculate and issue refunds or amounts of tax to pay using information received from employers and banks and other investment companies.

The proposals include:

- setting the threshold levels at which Inland Revenue should issue refunds or tax bills;

- direct crediting refunds to bank accounts;

- working with people throughout the year to suggest the right tax code for their circumstances;

- making it easier to claim tax credits for donations.

Feedback from the 2015 consultation document, Making tax simpler - A Government green paper on tax administration, was used to develop the proposals, which are part of the Government’s overall modernisation of the tax system.

For more information see the online forum at www.makingtaxsimpler.ird.govt.nz.

Consultation closes on Friday 28 July 2017.

An officials' issues paper, Taxation of employee share schemes: start-up companies, seeks feedback on proposed deferral rules for taxing employee share schemes offered by start-up companies.

Submissions closed on 12 July 2017.

A Government discussion document, Black hole and feasibility expenditure, seeks feedback on proposals to improve the tax treatment of feasibility expenditure for businesses.

Submissions closed on 6 July 2017.