Category: Inland Revenue Department

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Cost of Living Payments Bill enacted

The Taxation (Cost of Living Payments) Bill introduced into the House on 19 May and passed under urgency, has now been enacted.

The new Act allows Inland Revenue to make a cost of living payments to eligible individuals. The first payments will commence on 1 August 2022.

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Consultation on top tax rate avoidance prevention proposals

The Government has released public consultation on measures to limit the ability of individuals to avoid the 39% or the 33% personal income tax rates by using a company structure.

For more information and details on how to make a submission see Dividend integrity and personal services income attribution.

The closing date for submissions is 29 April 2022.

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Consultation on draft Long-term Insights Briefing

The Public Service Act 2020 requires public service agencies to publish a Long-term Insights Briefing at least once every three years. These aim to provide information on medium- and long-term trends, risks and opportunities and provide impartial analysis on possible policy responses.

Inland Revenue is seeking feedback on its draft long-term insights briefing, Tax, foreign investment and productivity – draft long-term insights briefing. The briefing, released today, examines how New Zealand’s tax settings are likely to affect costs of capital (or hurdle rates of return) for investment into New Zealand and the consequent implications for inbound investment, productivity and economic performance.

The analysis in the draft briefing is supported by a set of technical appendices, also released today, that provide further analytical detail on the formal models being used, as well as details on the implications of the formal modelling.

Consultation on the draft briefing closes on 14 April 2022.

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Government announces Income Insurance scheme consultation

The Government, Business New Zealand and the New Zealand Council of Trade Unions today announced proposals for a New Zealand Income Insurance scheme to help support New Zealanders who are made redundant and laid off, or have to stop working because of a health condition or disability.

The proposed scheme would support workers with 80 percent of their income for up to seven months if they lose their job through no fault of their own. Like ACC for accidents, the scheme would be funded by levies on wages and salaries, with both workers and employers contributing.

The key features of the proposed New Zealand Income Insurance Scheme are:

• Broad coverage for different working arrangements
• Coverage for job losses due to redundancy, layoffs and health conditions and disabilities
• A four-week notice period and four-week payment, at 80% of salary, from employers
• A further six months of financial support from the scheme, at 80% of wages or a salary
• Option to extend support for up to 12 months for training and rehabilitation
• A case management service to support people’s return to work
• Administered by ACC
• Funded by levies on wages and salaries, with both workers and employers paying an estimated 1.39% each
• Workers eligible after six months of levy contributions in the previous 18 months.

The Government, Business New Zealand and the New Zealand Council of Trade Unions are keen to hear from businesses, the self-employed and workers on their proposals.

For more information on the proposal, or to make a submission, see proposals released for a New Zealand Income Insurance Scheme (available on the Ministry of Business, Innovation & Employment’s website).

Submissions close on 26 April 2022.

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Family Tax Credit Bill passed

The Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Bill, introduced on 23 November, passed through all stages in the House last night. The Bill:

• increases the Family Tax Credit by almost $15 per week for the eldest child in a family and around $13 per week for subsequent children from 1 April 2022
• provides for a scheduled CPI indexed increase to Best Start from $60 to $65 per week from 1 April 2022
• increases the abatement rate for the Family Tax Credit and the In-Work Tax Credit from 25 percent to 27 percent from 1 April 2022
• increases the Minimum Family Tax Credit threshold from $31,096 to $32,864 from 1 April 2022, and
• removes the requirement for a change in Alert levels for activating the Resurgence Support payment under the new COVID-19 Protection Framework.

The new legislation now awaits enactment. For more information, see the Minister of Revenue’s media statement.

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Questions and answers on property investment proposals

Inland Revenue has compiled a set of questions and answers to support the Government’s policy proposals on interest limitation for residential property investors.

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: MFTC threshold increased

<p>The <a href=”https://legislation.govt.nz/bill/government/2021/0038/8.0/whole.html”>Taxation (Budget 2021 and Remedial Measures) Bill</a> was introduced into the House on Thursday 20 May 2021. The Bill has now passed through all stages under urgency and increases the minimum family tax credit threshold from $30,576 to $31,096 from 1 July 2021. This change is a consequence of main benefit increases announced in Budget 2021, and ensures that low-income working families will be better off working and receiving the MFTC, than they would be on a main benefit, on an annual basis.</p>
<p>The Bill also corrects a drafting error made in the Child Support Amendment Act 2021, which stated that two late payment penalty changes would apply from 1 April 2021. The Bill amends the application dates for these changes from 1 April 2021 to 1 April 2022, or a date to be set by Order in Council, as was originally intended.</p>

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Updates required to the recent special report

<p>We have identified several errors in the recent <a href=”/publications/2021/2021-sr-arferm-act”>special report on the Taxation (Annual Rates for 2020&ndash;21, Feasibility Expenditure, and Remedial Matters) Act 2021</a>, and are currently in the process of updating it. We apologise for this inconvenience and an updated version will be published by early next week.</p>

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Special report on new tax legislation

<p>On 30 March, the <a href=”/bills/52-273″>Taxation (Annual Rates for 2020&ndash;21, Feasibility Expenditure, and Remedial Matters) Act 2021</a> was granted Royal assent and passed into law.</p>
<p>A <a href=”/publications/2021/2021-sr-arferm-act”>special report</a> on the new legislation is now available and provides early information on:</p>
<ul>
<li>land-related amendments (including the extension to the bright-line test)</li>
<li>feasibility expenditure</li>
<li>purchase price allocation</li>
<li>unclaimed money, and</li>
<li>other changes.</li>
</ul>
<p>Comprehensive coverage of the new Act will be published in an upcoming edition of the <em>Tax Information Bulletin</em>.</p>

—

Source: New Zealand Inland Revenue Department – Press Release/Statement:

Headline: Tax Bill passed

<p>Parliament has passed the <a href=”/bills/52-273″>Taxation (Annual Rates for 2020&ndash;21, Feasibility Expenditure, and Remedial Matters) Bill</a>. The Bill includes measures to:</p>
<ul>
<li>allow businesses to claim greater deductions for feasibility expenditure</li>
<li>loosen the loss continuity rules</li>
<li>extend the bright-line test, and</li>
<li>require consistent allocation of the purchase price of property in an asset sale.</li>
</ul>
<p>The Bill now awaits Royal assent.</p>

—