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

Topic: Tax Review 2001

16 December 2003

An issues paper released today canvasses two options for changing the way non-controlled offshore investments in equity are taxed. One is to use a version of the risk-free rate of return method recommended by the Tax Review in 2001, which would tax expected income. The other option is to use a series of methods to tax income after it has been earned. For more information see the government's media statement and the issues paper, "Taxation of non-controlled offshore investment in equity".

26 October 2001

In a speech today to the ICANZ tax conference in Rotorua, Revenue Minister Michael Cullen elaborated on the Government's initial response to the Tax Review report, released on Wednesday. He also updated the audience on other tax policy matters, including the thin capitalisation review, the joint Australia-New Zealand discussion document on "triangular taxation", and the tax bill to be introduced in December. For details see the Minister's ICANZ speech.

24 October 2001

The Tax Review released its final report to the Government today. Its recommendations include:

  • Adopting a two-step rate for personal tax: 18% on income up to $29,500 and 33% thereafter.
  • Aligning the tax rate for companies and trusts with the top 33% personal rate.
  • Reducing the company tax rate to the extent of a company's foreign ownership.
  • Taxing savings and investment vehicles and offshore portfolio investments by a consistent method based on a risk-free rate of return.
  • Removing excise taxes on tobacco, alcohol, gaming and roading, and replacing the lost revenue by increasing GST.

The review does not recommend introducing a tax on owner-occupied housing or a general capital gains tax. The report is available at and at Bennett's Government Bookshops. For the Government's response see media statement.

23 October 2001

The Tax Review will release its final report to the Government at a press conference on 24 October. For more information see media advisory.

9 October 2001

The release date for the final report of the Tax Review is 24 October, Review Chairman Rob McLeod announced today.

For more information see media advisory.

Rob McLeod
Chair of the Tax Review 2001

Media Advisory

Tax Review announces final report release

The Chairman of Tax Review today announced that the Review will make their final report public on October 24. The time and details of the release will be announced closer to the date.

20 June 2001

The Tax Review today released an issues paper that will form the basis of its second round of public submissions. The issues discussed in the paper include capital gains taxation; alcohol, tobacco and gambling taxes; taxation of 'income' from owner occupied housing; financial transactions tax; eco-taxes; personal and corporate tax rate scales; the taxation of different legal entities; and international tax issues. The issues paper is available at See also:

29 March 2001

The Tax Review has welcomed the 100 submissions it received in its first round of public consultation, the deadline for which was 16 March. The next step for the Review is the publication of an issues paper. See Tax Review media release.

19 December 2000

The Tax Review is calling for its first round of public submissions on a range of tax policy issues, Chairman Rob McLeod said today in a statement. The statement is available on the review's website, together with an "Invitation for Submissions" that highlights some of the issues for consultation, at

3 November 2000

The Tax Review team announced in October by Finance and Revenue Minister Michael Cullen had its first meeting this week. In a statement issued today, chairman Rob McLeod said the public will have an opportunity to make submissions to the review in December, with a second round of submissions expected around Easter. See Tax Review 2001 media statement.

5 October 2000

Finance and Revenue Minister Michael Cullen today announced the names of the panel members of the forthcoming review of the tax system. They are: