25 June 2013
Canterbury Extension to Earthquake Relief Announced
In recognising that people and businesses in Canterbury are still dealing with challenging circumstances, the Government is proposing extending some temporary measures introduced after the February earthquakes, Revenue Minister Todd McClay announced today.
The current time limit for tax measures introduced to address Canterbury earthquake-specific issues was due to expire at the end of the 2015/16 income year. The proposal is to extend this to the end of the 2018/19 income year. The extension is contained in Supplementary Order Paper (257) to the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill released by Mr McClay today.
“Our objective is to help create an environment that will support people and businesses in Canterbury to get back on their feet. Roll-over relief, which provides taxpayers with relief from taxation on depreciation recovery income resulting from buildings damaged by the earthquakes, is an important way to support businesses” Mr McClay said.
“Reinvestment in Canterbury is crucial, and the proposals I am announcing today are tailored towards conditions in Canterbury.
“Firstly, we understand that reinvestment in Canterbury is occurring through groups of investors teaming together, rather than sole investors. So to ensure that the roll-over relief continues to be available in this situation, the proposal is that the rollover relief continues to benefit the original property owner” Mr McClay said.
The second important feature of the proposals is that in the case of a building, a commitment to the rebuild in Canterbury must have been demonstrated by the end of the 2015/16 year, in order to access the extension of time.
“For businesses getting back on their feet, being able to replace assets lost in the earthquake will be crucial and could make all the difference,” Mr McClay said.
Further information on the Supplementary Order Paper can be found at http://taxpolicy.ird.govt.nz/
Media contact: Rob Eaddy 027 459 6200