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


New tax rules on foreign super schemes

29 April 2005 Media Statement

New tax rules on foreign super schemes

The government will introduce tax changes to improve the New Zealand tax treatment of accrued entitlements in foreign superannuation schemes, Revenue Minister Michael Cullen announced today.

“The superannuation issue is a tax impediment to maintaining an open labour market between Australia and New Zealand, which is a major benefit of CER, Dr Cullen told the International Fiscal Association conference today.

“Moreover, business feedback is that the potential tax consequences of having interests in a foreign employment-related super scheme are a disincentive to people taking up permanent or long-term employment here.

“For this reason, the government proposes to exempt specified Australian employment-related schemes from the foreign investment fund rules. We will need to work with Australia on the proper scope of the exemption.

“In Australia, employers generally make compulsory contributions into Australian superannuation funds on behalf of employees, who do not generally have access to their superannuation entitlements until they reach retirement age.

“Those who come to New Zealand for long-term or permanent employment – whether Australians or returning New Zealanders – may be required to pay tax on those or subsequent entitlements under our foreign investment fund rules.

“The foreign investment fund tax rules will also be amended to make the current exemption for interests in employment-related foreign superannuation schemes more generous. At present, the exemption applies only to new migrants and entitlements acquired while the person concerned was not a resident of New Zealand.

Changes to be introduced in the taxation bill planned for May this year will extend the exemption to returning New Zealanders as well.

The exemption will also cover entitlements acquired up to the end of the fifth year of each new period of New Zealand residence. It will take effect for persons who become resident in New Zealand on or after 1 April 2006,” Dr Cullen said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election