March bill legislation enacted

Legislation introduced in the Taxation (FBT, SSCWT and Remedial Matters) Bill, introduced in March, received royal assent yesterday. The optional multi-rate fringe benefit tax generally applies from 1 April 2000, but for those who pay FBT on an income year basis it applies from the 2000-01 income year. The superannuation fund withdrawal tax applies from 14 September 2000.

The legislation also:

• Removes use-of-money interest on fringe benefit tax paid once a year, from the 2001-02 income year.
• Clarifies the application of the foreign investment fund rules when a company migrates from New Zealand, with effect from the 1999-2000 income year.
• Removes a technical problem in the rules relating to employer contributions to specified superannuation schemes that are treated as salary or wages, with effect from 26 November 1988.

Also enacted was legislation contained in the associated Securities Amendment Bill, which gives superannuation funds a year in which to update their investment statements and prospectuses to include information about the new superannuation fund withdrawal tax.