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

Australia

2009 agreement

Text: DOC (157KB)
PDF (95KB)
Status: In force
Signed: 26 June 2009
In force: 19 March 2010
Effective: In New Zealand: for withholding taxes, from 1 May 2010; for other provisions, generally from income years beginning 1 April 2010.
In Australia: for withholding taxes, from 1 May 2010; for fringe benefits, from 1 April 2010; for other provisions, generally from years of income beginning 1 July 2010.
Refer to Article 30 of the agreement.
Legislation: Double Taxation Relief (Australia) Order 2010 (New Zealand Legislation website)
National interest analysis: PDF (137KB)

1995 agreement

Status: Terminated
Signed: 27 January 1995
Legislation: Double Taxation Relief (Australia) Order 1995 (New Zealand Legislation website)

Protocol to the 1995 agreement

Status: Terminated
Signed: 15 November 2005
Legislation: Double Taxation Relief (Australia) Amendment Order 2006 (New Zealand Legislation website)

Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS

Text: OECD website
Status: In force for New Zealand and Australia
Signed: 8 June 2017 [7 June 2017 in Paris, France]
In force: For New Zealand: 1 October 2018
For Australia: 1 January 2019
Effective: The MLI comes into effect under Article 35(1) for a DTA from the latest of the dates on which the MLI enters into force for New Zealand and Australia:
  • for withholding taxes: from 1 January 2019 
  • for all other taxes: for taxable periods commencing on or after 1 July 2019
Legislation Double Tax Agreements (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting) Order 2018 (New Zealand Legislation website)
National interest
analysis
Finance and Expenditure Committee report (includes NIA) (PDF 95 KB) (New Zealand Parliament website)
Additional information

Frequently asked questions

Article 4(3) – Competent Authority Determinations

Question:

How do I apply for a competent authority determination under Article 4(3) of the New Zealand – Australia double tax agreement as modified by Article 4(1) of the Multilateral Convention to Implement Tax Treaty Related Measures Related Measures to Prevent Base Erosion and Profit Shifting (the MLI).

Answer:

To obtain a determination of residence of a non-individual taxpayer under this provision of the Convention, you will need to apply in writing to either competent authority requesting consideration of the matter by setting out in some detail the relevant facts and circumstances of your case.

If applying to the New Zealand competent authority, please direct your correspondence to:

New Zealand Competent Authority
International Revenue Strategy
P O Box 2198
Wellington 6140
New Zealand
competentauthority@ird.govt.nz

Your letter to the New Zealand Competent Authority should include the following:

  • The registered name of the entity, registered office addresses (including any overseas addresses), IRD number, and details of the entity’s tax agent.
  • A statement describing why the entity is not eligible to use Australia and New Zealand's administrative approach to MLI Article 4(1).
  • A submission on the entity’s jurisdiction of residence for treaty purposes, including the commencement date of such self-determination. This submission should be supported by relevant evidence, including:
    • confirmation of where the entity is incorporated or otherwise constituted;
    • a brief description of who makes the key management and commercial decisions for the entity, and where these decisions are in substance made;
    • where the meetings of the board of directors or equivalent body are usually held;
    • where the chief executive officer and other senior directors usually carry out their activities;
    • where senior day-to-day management of the entity is usually carried on;
    • where accounting records, and board minutes or equivalent documents recording key management or commercial decisions, are prepared and maintained;
    • where the majority of the company’s business activities are carried on; and
    • any other evidence that you consider relevant to the determination of residence for treaty purposes.

All information received by the New Zealand competent authority will also be provided to the Australian competent authority. If either competent authority requires additional information or documentation to complete the evaluation of the application, they may request it. The competent authorities will endeavour to issue a determination in accordance with Article 4(1) within 6 months of receipt of the application, subject to the provision by the taxpayer of all information necessary for the competent authorities to be satisfied the determination can be made. The final outcome will be communicated in writing to the taxpayer or their agent.

Article 10(3)(c) – Competent Authority Determinations

Question:

How do I apply for a competent authority determination under Article 10(3)(c) of the double tax agreement that a zero-rate of withholding tax will apply to the payment of a particular dividend?

Answer:

To obtain a zero-rated withholding tax determination under this provision of the Convention, you will need to apply in writing to the relevant taxation authority requesting competent authority consideration of the matters by setting out in some detail the relevant facts and circumstances of your case, before payment of the relevant dividend.

For New Zealand subsidiaries of Australian parent companies, please direct your correspondence to:

New Zealand Competent Authority
International Revenue Strategy
Compliance Planning and Development
P O Box 2198
Wellington 6140
New Zealand

Your letter to the New Zealand Competent Authority should include the following:

  • background details as to corporate structure since 1 January 2008;
  • any material changes in capital structure since 1 January 2008;
  • recent trading history (including why the dividend is unimputed);
  • confirmation that the 80% voting power requirement has been met; and
  • why it is considered the first sentence of paragraph 9 of Article 10 of the double tax agreement does not apply.

For Australian subsidiaries of New Zealand parent companies, you will need to apply in writing to the relevant Australian Taxation Office where you lodge your annual corporate income tax return, setting out in detail the facts and circumstances of your case prior to the dividend payment and requesting a competent authority determination. The relevant area of the Australian Taxation Office will then consider the request and if they agree, will request the Australian competent authority to sign the necessary determination.
 

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