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

17 April 2019

Today the Government released its response to the recommendations of the Tax Working Group. For details of the announcement see the Ministers’ statement and the full list of responses to recommendations.

12 April 2019

Two special reports providing early information on new legislation in the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 are now available.

The special reports cover the new rules for:

- simplifying tax administration - individuals' income tax; and

- the taxation of bloodstock.

Complete coverage of the new Act will be published in the May 2019 edition of the Tax Information Bulletin.

4 April 2019

The Finance and Expenditure Committee has reported back to Parliament on the Taxation (Research and Development Tax Credits) Bill, introduced on 25 October 2018.

For more information see the Bill as reported back and the officials' report on submissions received on the Bill.

2 April 2019

A new Double Tax Agreement between the People’s Republic of China and New Zealand was signed in Beijing yesterday.

The agreement will promote economic ties between the two countries. It reduces the withholding tax rates imposed on certain dividends. It also eliminates the risk of double taxation.

The new DTA is New Zealand’s first to be signed following the completion of the work on base erosion and profit shifting (BEPS) and the release of the 2017 update of the OECD Model Tax Convention and contains new anti-BEPS measures.

For more information see the Minister of Revenue’s media statement and the text of the DTA.

13 March 2019

The Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill passed its third reading yesterday, and will come into effect on 1 April 2019.

Among a host of important improvements to the Tax Administration and Income Tax Acts, the Bill simplifies how tax is assessed for Individuals by issuing tax refunds automatically. Around 750,000 extra taxpayers will likely get a refund. These new processes, when implemented, will particularly benefit those who work extra jobs and have paid too much secondary tax during the year.

The new legislation also adds two new employee* contribution thresholds to KiwiSaver (6% and 10%), and opens the scheme up to over 65s.

For more information see the Minister of Revenue's media statement.

* Note: the original news item and mailing list message said employers - this was incorrect and should have read employee. Updated 2019-03-14 at 4:15pm.

Tax Working Group

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

Highlights

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

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