Feedback sought on draft Order in Council modifying GST adjustment rules

Inland Revenue has become aware of a technical error following changes to simplify the GST adjustment rules in 2023. The error prevents some taxpayers who acquired an asset before 1 April 2023 from using the simplified one step adjustment calculation when there was a permanent change of use of that asset on or after 1 April 2023.

The draft Order in Council, which aims to provide a temporary remedy to the error, is provided for public feedback.  A permanent solution will be included in an upcoming taxation bill.Submissions are due by 12 August 2024. 

Please address submissions to [email protected] with 'Modification to GST adjustment rules' in the subject line.