Budget 2013 tax announcements
16 May 2013
Budget 2013 continues the Government’s focus on further strengthening the tax system and improving public services to help provide an environment that supports business.
Today’s announcements include proposals to:
- change the tax treatment of specific forms of business “black hole” expenditure
- media statement - Budget tax relief for ‘black hole’ expenditure
- fact sheet - Black hole expenditure fact sheet
- cash out tax losses for research and development intensive start-up firms
- media statement - R&D tax-break proposal to boost start-ups
- review the effectiveness of the thin capitalisation rules
- media statement and fact sheet - Multinational investors – paying fair share of tax
- clarify the date when land is acquired for sale or disposal
- media statement - Property investment focus to return $45m a year
- officials’ issues paper - Clarifying the acquisition date of land.
Budget 2013 also contains proposed changes to the Student Loans Scheme:
- Putting in place an information-sharing agreement between Inland Revenue and the Department of Internal Affairs to collect contact details from passport renewal applications.
- Adjusting the overseas-based borrower repayment thresholds so that borrowers with higher loan balances have a higher repayment obligation.
- Making it an offence for a borrower to knowingly default on an overseas-based borrower repayment obligation so that an arrest warrant can be requested to prevent the most non-compliant borrowers from leaving the country.
For details of the proposed changes to the Student Loan Scheme see www.minedu.govt.nz/Budget2013.
Also announced was continued funding for Inland Revenue to strengthen auditing of property transactions:
- media statement - Property investment focus to return $45m a year.
Full details of Budget 2013 announcements are available at www.treasury.govt.nz/budget/2013