Parliament

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

 

Relocation payment, overtime meal allowance change

Media statement
For immediate release
Tuesday, 20 November 2007

Relocation payment, overtime meal allowance tax changes

An issues paper released today seeks feedback on the details of the government’s proposed legislative changes to ensure that employer payments for employee relocation expenses and overtime meal allowances are not taxable to the employees who receive them.

The paper outlines the possible requirements that would have to be met for these payments to be exempt from income tax and fringe benefit tax, seeking comment on the workability and effectiveness of the criteria.

“The proposed changes, announced on 24 October, are intended to remove the uncertainty about whether payments for relocation expenses and overtime meal allowances are taxable to the recipients,” Finance Minister Michael Cullen and Revenue Minister Peter Dunne said today.

“The uncertainty has grown over the years, and the time has come to clarify and simplify the legislation, to save time and money for everyone involved – employers, the tax administration and the government alike.

“As announced earlier, it will obviously be necessary to introduce clear limitations to the tax-free status of these payments, to prevent their being used as a non-tax salary substitute.

“For relocation expenses, the issues paper looks at what constitutes relocation, as opposed, say, to employees merely moving closer to their existing workplace, and what expenses should qualify as relocation expenses, of which a comprehensive list is provided.

“For overtime meal allowances, the issues paper suggests a number of limitations for them to be tax-free – such as requiring the employee’s contract to specify that he or she is eligible for a meal allowance when working overtime, and distinguishing in law between ‘overtime’ and other occasions for which meal allowances may be paid.

“We encourage all interested parties to express their views on the suggestions made in the issues paper, so that the ensuing legislation does what it is intended to do and operates as effectively as possible,” they said.

The issues paper, “Tax-free relocation payments and overtime meal allowances”, is available at www.taxpolicy.ird.govt.nz. The closing date for submissions is 14 December 2007.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

RBNZ To RNZB: PM's Press Conference

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’.

Robertson said he and the Cabinet viewed Orr in high regard. Terms will be agreed on his employment after the reserve bank act review. The future governor's pay would be greatly reduced - in the same scale as the most recent governor. More>>

 

'Taming Globalised Capital': Why Is Labour Supporting Investment Rules In WTO?

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>

ALSO:

Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government… More>>

ALSO:

Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>

ALSO:

Gordon Campbell: On Saying ‘Work For The Dole,’ Nicely

As New Zealand First learned the hard way from its two previous periods in government, small parties in MMP coalitions get blamed for the unpopular stuff done by their senior partner in power, but no one remembers the good stuff the junior player brought to the table... More>>

ALSO:

Seismic Blasting: Greenpeace Launches Legal Challenge Against Amazon Warrior

A legal challenge against the world’s largest seismic oil exploration ship was launched at a public rally on Parliament Lawn. More>>

ALSO:

Tertiary: 80,000 People Eligible For Fees Free

The Government has today made good on its 100-day promise of delivering the first year of fees-free post school training and education and industry training from 1 January next year, says Education Minister Chris Hipkins. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages