Tax policy news

The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill has been introduced into the House. The Bill contains the following measures:

• the annual rates of income tax for the 2023–24 tax year (unchanged)
• implementing the OECD Global Anti-Base Erosion rules
• raising the trustee tax rate from 33% to 39%
• amending the tax treatment of backdated lump sum ACC and MSD payments
• making a three percent KiwiSaver Government contribution to recipients of Paid Parental Leave who make their own contribution of at least 3%.
• tax relief measures for flood-hit businesses in the North Island.
  
  

For more information see:

• The Minister's press release
• Bill commentary, and
• other supporting information.

The Minister of Revenue has introduced a Bill containing a set of tax principles.  

The Bill also requires Inland Revenue to report actual outcomes of the tax system in relation to these tax principles.

For more information see:

• Minister's press release
• Bill commentary, and
• other supporting information.

The Government has today announced its Budget for 2023, which included three Revenue measures:

• Raising the trustee tax rate from 33% to 39% to align it with the top personal income tax rate for the 2024-25 and later income years from 1 April 2024 for most trusts.
• From 1 July 2024, Government will make a three percent KiwiSaver contribution to recipients of Paid Parental Leave who make their own contribution of at least 3%.
• The Budget also reflects an increase in revenue from imposing a tax on some large multinational enterprises operating in New Zealand.

These measures will be included in an upcoming taxation Bill.

For more information, see:

• Minister’s press release, and
• fact sheet on the trustee change.

For full details of all Budget announcements, see the Treasury website.

The Taxation (Annual Rates for 2022—23, Platform Economy, and Remedial Matters) Bill (No 2) has today received Royal assent.

The new legislation contains measures relating to:

• the platform economy
• new GST apportionment rules
• FBT exemptions for certain forms of employer-subsidised commuting options
• the tax treatment of cross-border workers
• flood relief measures, and
• excludes “build-to-rent” assets from the interest limitation rules.

Inland Revenue will publish guidance material on the new legislation shortly.

Social Development and Employment Minister, Carmel Sepuloni has introduced the Child Support (Pass On) Acts Amendment Bill.

The Bill proposes that child support collected by Inland Revenue will be passed on to sole parents receiving a main benefit for the month of July 2023 onward. This will be treated as income for benefits and other assistance.

For more information, see the ministerial press release, the Bill commentary, and other supporting material.