Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Tax programme to consider seismic strengthening inducements

Tax programme to consider seismic strengthening inducements

By Paul McBeth

Aug. 8 (BusinessDesk) - Inland Revenue's latest tax policy programme will consider ways to encourage seismic strengthening for both commercial and residential property in the short-term.

The proposal is detailed in the programme for the 2019/20 fiscal year released by Revenue Minister Stuart Nash today.

The government put a high priority on the Tax Working Group's recommendation to consider restoring depreciation deductions on seismic strengthening. The race to get buildings up to code following the Canterbury earthquakes added to an already stretched construction sector.

The tax policy programme will consider seismic strengthening in its work to support efficient land use, and also as a means to support businesses.

It notes the current land rules will be reviewed to ensure the current settings are fair, balanced and support productive investment, with the review putting particular emphasis on investment property and speculation, land banking, and vacant land. It also cites enhancing economic performance and minimising the impact of tax on business as a priority for the government.

Nash said the refreshed policy programme underlines the need to encourage productive investment to ensure the tax system remains sound.

"It highlights our intention to deal with land speculation and land banking. It prioritises the need to address tax barriers to investment in infrastructure and to reduce compliance costs for business," he said.

The government's programme will make infrastructure a major focus, and will consider how the tax system may need to adapt to new arrangements. The infrastructure work will respond to the Tax Working Group's recommendation to consider developing a regime that encourages investment in nationally significant infrastructure and consider the consistency of infrastructure revenue collection across government.

Tax policy officials will work with other agencies on environmental issues to advise on the tax implications. Included in that workstream, is a review of industry-specific tax provisions that affect natural capital, starting with petroleum mining.

"We are currently considering issues relating to the timing of deductions for petroleum development expenditure and have completed the legislative changes for the time-limited non-resident oil-rig exemption," it said.

In its business transformation workstream, the programme notes that the prescribed investor rate - a cornerstone of the portfolio investment entity regime, or PIE - may be reviewed. The Tax Working Group recommended ways to make it easier to work out PIE rates.

And in the social policy stream, officials are working with Ministry of Social Development counterparts to develop a welfare package, which will take a phased approach. That will also include work on enhancing trans-Tasman superannuation portability for KiwiSaver.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: