The following announcements were made today as part of Budget 2012 proposals.
- Tightening the rules around the deductibility of costs relating to mixed-use assets - those that are both used by their owners and rented out for income, such as holiday homes, boats and aircraft.
- Putting recent changes to livestock valuation rules into law through Budget legislation (with further detail to follow later in the year).
- Repealing two tax credits: the income under $9,880 tax credit and the childcare and housekeeper tax credit.
- Replacing the tax credit for the active income of children with a limited exemption for children.
- Removing the student loan voluntary repayment bonus from 1 April 2013.
- Providing an extra $78.4 million to Inland Revenue over the next four years for tax compliance activities.
- Increasing the student loan repayment rate for all New Zealand-based borrowers earning over the repayment threshold to 12 cents in the dollar from 1 April 2013.
- Broadening the definition of income for student loan repayment purposes to include a wider range of income types from 1 April 2014.
- Implementing an information match between Inland Revenue and the New Zealand Customs Service to identify Student Loan borrowers in serious default.
For more information
- Mixed use assets, livestock valuation election changes and changes to tax credits:
- Tax credits:
Details of the transitional rules and new exemption
- Student loans voluntary repayment bonus:
Summary of the proposed change, fact sheets and Q&A.
- Student loans repayment rate increase:
- Extra funding to Inland Revenue for compliance activities:
For more information on Budget 2012, please see the Treasury website at http://www.treasury.govt.nz/budget/2012.