LEG-19-MIN-0096 – Minute: Taxation (Use of Money Interest Rates) Amendment Regulations 2019

Date 25 June 2019
Reference LEG-19-MIN-0096
Document type Cabinet committee minute
Title Taxation (Use of Money Interest Rates) Amendment Regulations 2019
Downloads PDF (137 KB)
DOCX (58 KB)

This document contains information for the New Zealand Cabinet. It must be treated in confidence and handled in accordance with any security classification, or other endorsement. The information can only be released, including under the Official Information Act 1982, by persons with the appropriate authority.


Taxation (Use of Money Interest Rates) Amendment Regulations 2019

Portfolio Revenue

On 25 June 2019, the Cabinet Legislation Committee:

1 agreed that the use-of-money interest underpayment rate be changed to 8.35 percent from 8.22 percent;

2 agreed that the use-of-money interest overpayment rate be changed to 0.81 percent from 1.02 percent;

3 agreed that the Taxation (Use of Money Interest Rates) Amendment Regulations 2019 give effect to the new rates referred to in paragraphs 1 and 2 above;

4 agreed that the Taxation (Use of Money Interest Rates) Amendment Regulations 2019 come into force on 29 August 2019;

5 noted the following changes as a result of the decision in paragraphs 1 and 2 above, with a corresponding impact on the operating balance:

  $ millions increase / (decrease)
Vote Revenue
Minister of Revenue
2018/19 2019/20 2020/21 2021/22 2022/23 & Outyears
Crown Revenue and Receipts: Tax Revenue - 9.000 10.000 10.000 10.000
Total Operating - 9.000 10.000 10.000 10.000

6 approved the following forecast change in appropriations for Non-Departmental Other Expenses, as a result of the decision in paragraphs 1 and 2, with a corresponding impact on the operating balance:

  $ millions increase / (decrease)
Vote Revenue
Minister of Revenue
2018/19 2019/20 2020/21 2021/22 2022/23 & Outyears
Non-Departmental Other Expense: Impairment of debt and debt write-offs (funded by Revenue Crown) - 3.000 3.000 3.000 3.000
Total Operating - 3.000 3.000 3.000 3.000

7 authorised the submission to the Executive Council of the Taxation (Use of Money Interest Rates) Amendment Regulations 2019 [PCO 22181/2.0].

Vivien Meek
Committee Secretary


Present:
Rt Hon Winston Peters
Hon Andrew Little
Hon Stuart Nash
Hon Iain Lees-Galloway (Chair)
Hon Tracey Martin
Hon Eugenie Sage
Hon Ruth Dyson (Senior Government Whip)

Officials present from:
Office of the Prime Minister
Officials Committee for LEG

Hard-copy distribution:
Minister of Revenue