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Motor vehicle GST exemption for returning Kiwis

6 December 2004 Media Statement

Motor vehicle GST exemption for returning Kiwis

Commerce Minister Margaret Wilson today announced that New Zealanders returning home would be able to bring their motor vehicle into the country without paying GST.

An amendment to the First Schedule to the Tariff Act 1988 will allow New Zealand residents returning after an absence of 21 months or more overseas to import their motor vehicle GST-free.

"The GST exemption was made in response to representations from New Zealanders returning to New Zealand," Margaret Wilson said. "I'm pleased to say that returning New Zealanders will now be on the same footing as first-time immigrants."

To qualify for the exemption, New Zealanders must be returning home to resume permanent residence and the vehicle must have been used personally for at least a year. Those seeking the exemption will also have to give a written undertaking to pay the GST charge if the vehicle is sold or disposed of within two years.

Margaret Wilson said the amendment is expected to take effect early next month.


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