Appendix 2 – Routine updates to regulations

Regulation Description Frequency
Taxation (Use of Money Interest Rates) Regulations 1998 Sets the rates of interest payable on underpayments and overpayments of tax. As needed
Income Tax (Fringe Benefit Tax, Interest on Loans) Regulation 1995 Sets the prescribed interest rate that is use to determine if a fringe benefit exists in relation to an employment related loan. If the interest rate increases, the new rate applies from the commencement of the next quarter. If the interest rate decreases, the new rate applies from the commencement of the quarter in which the rate decreases. Quarterly
Income Tax (Family Tax Credit) Regulations Increases the amount of the family tax credit. As needed – if the percentage movement in the CPI is 5% or more
Income Tax (Minimum Family Tax Credit) Regulations Increases the family tax credit threshold in section ME 1(3) of the Income Tax Act 2007. The credit ensures families do not suffer a reduction of income when moving off a welfare benefit into 30 hours or more of unpaid work. Annually
Income Tax (In-Work Tax Credit) Regulations Increases the amount of the in-work payment amount. The amount is only increased as a result of a review of the amount by the Minister of Revenue in consultation with the Minister of Social Development. Changes are made by Order in Council if the Minister makes a policy decision to do so. Every three years (the first review was undertaken in 2008)
Income Tax (Parental Tax Credit) Regulations Increases the amount of the parental tax credit. The amount is only increased as a result of a review of the amount by the Minister of Revenue in consultation with the Minister of Social Development. Every three years (the first review was undertaken in 2008)
Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulation Sets the interest rate that is to be paid on deposits to the adverse events income equalisation scheme. As needed
Income Tax (Deemed Rate of Return, 20XX-20XX Income Year) Regulations Sets the deemed rate of return under the foreign investment fund (FIF) rules. The deemed rate of return is based on an average of the five-year government stock rates prevailing at the end of each quarter throughout the income year and adding a margin of 4%. Annual
Income Tax (Payroll Subsidy) Regulations 2006 Provides for the amount of the subsidy and the calculation of the payroll subsidy to be paid to PAYE intermediaries. As needed
SILNA (Conservation Payments) Regulations Provides for payments of money made in consideration of entering into a conservation covenant over specified Māori land (SILNA land) is not gross income of the recipient. Irregularly - as requested
Student Loan Scheme (Charitable Organisations) Regulation 2006 Allows charitable organisations to be listed for the purposes of the Student Loan Scheme Act. Under that Act, a student loan borrower who was personally absent from New Zealand because he or she was working as a volunteer or for token payment for a charitable organisation named in the regulations may be granted an exemption by the Commissioner of Inland Revenue entitling that borrower to a full interest write-off. As needed
Student Loan Scheme (Repayment Threshold) Regulations Sets the income threshold at which borrowers are required to commence making repayment obligations. Annually
Student Loan Scheme (Repayment Obligations of Overseas-based Borrowers) Regulations Sets the level of loan balance at which overseas-based borrowers must make repayments. As needed
Student Loan Scheme (Establishment Fee) Regulations Sets the amount of the student loan establishment fee that is charged to a borrower each time the borrower enters into a loan contract after 31 March 2012. As needed
Student Loan Scheme (Annual Administration Fee) Regulations Sets the amount of the annual administration fee charged if a borrower has a consolidated loan balance of $20 or over (note: not charged if a student loan establishment fee is charged in that tax year). As needed
Student Loan Scheme (Late Payment Interest Threshold) Regulations Sets the threshold for when late payment interest is charged (currently $334 and over). As needed
The Commissioner may charge taxpayers  the service fee associated with using credit or debit cards to make payments The service fee is currently 1.42% of the amount paid, plus GST if any. The amount of the service fee can be changed by Order in Council. As needed
Taxation (Direct Credit Refund) Regulations Specify a tax refund type must be made by direct credit to a bank account nominated by the taxpayer entitled to a refund. As needed