NZ-Australia double tax agreement updated
New Zealand and Australia have signed a protocol updating the 1995 double tax agreement between the two countries.
"Our double tax agreement with Australia is our most important tax treaty, given the significance of our economic relationship and trans-Tasman investment, so it is essential that it is kept up to date," Revenue Minister Peter Dunne said today.
"Whether we negotiate a completely new double tax agreement between the two countries is still under review. It will depend in part on whether New Zealand is willing to lower the withholding rates covered by the agreement, a decision the government expects to make next year.
"In the meantime, the protocol signed today makes urgent administrative changes to the agreement to ensure it works to maximum benefit for both parties."
"The protocol updates the article in the agreement governing exchange of information and inserts a new article to allow assistance with tax collection. These changes will assist the extension of Australia's Wine Equalisation Tax Rebate to New Zealand wine producers who export to Australia.
"It also ensures that Australia does not lose priority over New Zealand's 28 other treaty partners to negotiate lower treaty withholding rates should we decide to reduce them," Mr Dunne said.
"The amended agreement will be given effect in both countries once they have introduced the necessary domestic legislation, which in New Zealand's case will be an Order in Council, probably early next year," Mr Dunne said.
The signing of an amending protocol took place in Melbourne today between Australian Treasurer Peter Costello and New Zealand’s High Commissioner.
The text of the amending protocol is available at www.taxpolicy.ird.govt.nz.
Contact: Ted Sheehan, Tel: 04 470 6985, Cell: 021 638 920