Tax Bill passed

On 29 March 2022, Parliament passed the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill, which was introduced on 8 September 2021.

The Bill includes measures aimed at limiting the deductibility of interest incurred for residential property investments and updates to the residential property bright-line test. The Bill also contains a range of proposed improvements and maintenance measures to ensure the smooth functioning of the tax system, including to:

• modernise the GST invoicing rules
• introduce specific rules for the GST treatment of cryptoassets
• set penalties for the sale and acquisition of sales suppression software, and
• set the annual income tax rates for the 2021–22 tax year.

The Bill now awaits the Royal assent.