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Tax policy news

Rates for UOMI, FBT interest on loans and DRR updated
16 June 2022

Orders in Council updating certain rates were recently made. The paying rates for use of money interest has changed. The new underpayment rate is 7.28% (previously 7.00%). The overpayment rate remains at 0%. The rate of interest used to calculate interest on employment-related loans for fringe benefit tax purposes increases from 4.50% to 4.78%. The deemed rate of return used to calculate foreign investment fund income for the 2021–22 income year rises from 4.43% to 6.01%.

For more information on these, see:

  • Special Report - Order in Council: Taxation (Use of Money Interest Rates) Amendment Regulations 2022
  • Special Report - Order in Council: Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2022
  • Special Report - Order in Council: Income Tax (Deemed rate of return on attributing interests in Foreign Investment Funds, 2021–22 income year) Order 2022
Cost of Living Payments Bill enacted
25 May 2022

The Taxation (Cost of Living Payments) Bill introduced into the House on 19 May and passed under urgency, has now been enacted.

The new Act allows Inland Revenue to make a cost of living payments to eligible individuals. The first payments will commence on 1 August 2022.

Cost of Living Payments Bill introduced
19 May 2022

The Minister of Revenue introduced a taxation Bill into the House today which would allow Inland Revenue to make a cost of living payment to eligible individuals. The payment is a temporary measure to provide short-term support for individuals earning up to $70,000 in the 2021/22 year and not receiving the Winter Energy Payment.

Budget 2022
19 May 2022

Finance Minister Grant Robertson has announced the Government’s Budget for 2022. Included in today’s announcement were:

  • A cost of living payment to New Zealanders earning up to $70,000 in the 2021/22 year. This payment of $350 divided over three months will be paid to eligible people from 1 August. There is no application process. Inland Revenue will assess eligibility and pay the money direct into bank accounts.
  • The Government also announced that from 1 July 2023 child support collected by Inland Revenue will be passed on to sole parent beneficiaries.
  • In addition, the Budget provides permanent baseline funding for Inland Revenue’s on-going administration of the research and development tax incentive. Current funding was due to expire on 30 June 2022.
  • The Budget also provides Inland Revenue with funding to maintain capability to support ongoing integrity work and manage cost pressures.

Full coverage of the Budget announcements is available at

OECD Pillar 2 consultation launched
05 May 2022

Public consultation opened today on whether and how New Zealand should participate in an OECD/G20 tax measure aimed at base erosion and profit shifting by large multinational enterprises. Also known as the GloBE rules, the measure would impose a minimum 15% tax on the excess income of multinational enterprises in every country in which they operate. Excess income is income in excess of a routine return on tangible investment and employee costs.

An officials' issues paper, OECD Pillar Two: GloBE rules for New Zealand, discusses the rules and areas officials would like feedback on.

The closing date for submissions is 1 July 2022.

More News

The Government's property announcements

See the summary page for details about the Government's changes to the taxation of residential investment property (last updated on 31 March 2022).

The new legislation was enacted on 30 March 2022.


31 March 2022 – Special reports on measures in new legislation

30 March 2022 – Tax Bill passed

3 March 2022 – Tax Bill reported back

24 February 2022 – Consultation on draft Long-term Insights Briefing

11 February 2022 – Public views sought on digitising the tax system

Information releases

View the latest information releases available (includes Cabinet papers, minutes, and key supporting papers for tax policy related decisions).

Tax Working Group (2017–2019)

For the terms of reference, news, reports, and other information see the Tax Working Group website. (This site is now archived.)