Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Major taxation bill introduced

Major taxation bill introduced

A bill introduced into Parliament today will bring into effect New Zealand’s part in a landmark agreement with Australia to remove a tax impediment to trans-Tasman investment.

“The joint initiative, announced in February, reflects the commitment of both governments to the continued strengthening of the Closer Economic Relations agreement and to reducing impediments generally to trans-Tasman business,” Revenue Minister Michael Cullen said.

“To this end, the imputation systems of each country are being extended to include companies resident in the other country that want to take part. The bill will make New Zealand imputation credits available to Australian companies, while similar legislation before Parliament in Canberra makes Australian franking credits available to New Zealand companies,” Dr Cullen said.

Other major reforms introduced in the bill are: Legislation that better aligns the GST treatment of the financial services sector with that of other industries. Banks, credit unions, life insurers and other financial institutions will be allowed to recover GST on purchases related to the supply of their services to businesses, which will reduce over-taxation of the sector.

Introduction of a GST reverse charge to tax certain imports of services, to alleviate the distortion in favour of imported services, which, unlike domestically supplied services, are not subject to GST.

A measure to combat aggressive tax arrangements, many of which are mass-marketed, that result in investors receiving more tax deductions than the money they invest in the arrangement.

A new rule will target arrangements in which investors are not at real risk of having to repay associated loans. Legislation enabling employer contributions to superannuation funds on behalf of employees earning less than $38,000 a year to be taxed at a lower, 21 per cent rate.

The measure is intended to reduce the over-taxation of the retirement savings of low-income people.

Full information on these and other matters in the Taxation (Annual Rates, GST, Trans-Tasman Imputation and Miscellaneous Provisions) Bill is available in the commentary on the bill published at http:// http://www.taxpolicy.ird.govt.nz.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news