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Inland Revenue

Tax Policy

Last updated 6 May 2022
Closing date 27 April 2022

Status Complete

GST apportionment and adjustment rules

Officials are seeking feedback on issues with the GST apportionment and adjustment rules, and on policy options for reforming and simplifying them.

An officials’ issues paper, GST apportionment and adjustment rules, discusses:

  • issues with the current apportionment and adjustment rules
  • an option to enable registered persons to elect to exclude certain capital assets from their taxable activity
  • rounding-based options for removing most assets from the apportionment and adjustment rules
  • potential options for improving definitions for “dwelling” and “commercial dwelling”
  • a potential reform option that would involve developing a new set of special rules for house sales
  • potential rules for applying GST to land that is developed and sold by property developers, and
  • a range of minor or incremental ways to reduce compliance costs in those cases where apportionment would still be required.

Submissions closed on 27 April 2022.