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Tax policy news

Budget 2022
19 May 2022

Finance Minister Grant Robertson has announced the Government’s Budget for 2022. Included in today’s announcement were:

  • A cost of living payment to New Zealanders earning up to $70,000 in the 2021/22 year. This payment of $350 divided over three months will be paid to eligible people from 1 August. There is no application process. Inland Revenue will assess eligibility and pay the money direct into bank accounts.
  • The Government also announced that from 1 July 2023 child support collected by Inland Revenue will be passed on to sole parent beneficiaries.
  • In addition, the Budget provides permanent baseline funding for Inland Revenue’s on-going administration of the research and development tax incentive. Current funding was due to expire on 30 June 2022.
  • The Budget also provides Inland Revenue with funding to maintain capability to support ongoing integrity work and manage cost pressures.

Full coverage of the Budget announcements is available at www.budget.govt.nz

Cost of Living Payments Bill introduced
19 May 2022

The Minister of Revenue introduced a taxation Bill into the House today which would allow Inland Revenue to make a cost of living payment to eligible individuals. The payment is a temporary measure to provide short-term support for individuals earning up to $70,000 in the 2021/22 year and not receiving the Winter Energy Payment.

OECD Pillar 2 consultation launched
05 May 2022

Public consultation opened today on whether and how New Zealand should participate in an OECD/G20 tax measure aimed at base erosion and profit shifting by large multinational enterprises. Also known as the GloBE rules, the measure would impose a minimum 15% tax on the excess income of multinational enterprises in every country in which they operate. Excess income is income in excess of a routine return on tangible investment and employee costs.

An officials' issues paper, OECD Pillar Two: GloBE rules for New Zealand, discusses the rules and areas officials would like feedback on.

The closing date for submissions is 1 July 2022.

Special report on FDR foreign currency hedges
28 April 2022

The Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 was enacted on 30 March 2022. This special report provides early technical coverage of changes to the fair dividend rate foreign currency hedges rules.

Full coverage of the new legislation will be provided in an upcoming issue of the Tax Information Bulletin.

Consultation opens on Working for Families Tax Credits
20 April 2022

Inland Revenue and the Ministry of Social Development have launched public consultation as part of the Government’s review of Working for Families, to understand how it can better meet the needs of families. The review will not affect current Working for Families payments.

Submissions are welcomed from a wide range of groups and people whether or not they are registered for, or receiving Working for Families tax credits.

Feedback can be provided to the Ministry of Social Development through an online survey, by email or post. Full details of the consultation proposals and how to make a submission can be found at Public Consultation on Working for Families Tax Credits - Ministry of Social Development (msd.govt.nz) 

Consultation ends 31 May 2022.


More News

The Government's property announcements

See the summary page for details about the Government's changes to the taxation of residential investment property (last updated on 31 March 2022).

The new legislation was enacted on 30 March 2022.

Highlights

31 March 2022 – Special reports on measures in new legislation

30 March 2022 – Tax Bill passed

3 March 2022 – Tax Bill reported back

24 February 2022 – Consultation on draft Long-term Insights Briefing

11 February 2022 – Public views sought on digitising the tax system

Information releases

View the latest information releases available (includes Cabinet papers, minutes, and key supporting papers for tax policy related decisions).

Tax Working Group (2017–2019)

For the terms of reference, news, reports, and other information see the Tax Working Group website. (This site is now archived.)