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


Dunne: feedback sought on taxing employee allowances

Hon Peter Dunne

Minister of Revenue

Thursday 15 November 2012

Media Statement

Dunne: feedback sought on taxing employee allowances

Revenue Minister Peter Dunne today welcomed an Inland Revenue tax policy issues paper regarding the tax treatment of employee allowances.

“Essentially, the proposed changes are to make the rules easier to apply,” Mr Dunne said.

The paper, Reviewing the tax treatment of employee allowances and other expenditure payments, suggests a number of changes to the tax treatment of certain payments to cover expenses such as meals, accommodation, clothing and cellphones.

“The current legislation around allowances and other expenditure payments can leave businesses unclear about the extent to which such payments are taxable under different circumstances,” he said.

“Under the current rules, payments that meet an employee’s private expenses are treated as being part of the person’s taxable income. However there are occasions when the line between a private expense and what is solely a work expense is not straightforward.

“The issues paper makes some very practical suggestions about how to resolve these uncertainties and make the rules simpler for employers to administer,” Mr Dunne said.

“It recognises that any changes must take into account the costs to businesses in administering the rules.

“For that reason, the paper suggests some clear boundaries for particular allowances, including the time over which they are provided tax-free, to give greater certainty to businesses.”

He said that the paper seeks feedback on the suggested changes.

The paper, Reviewing the tax treatment of employee allowances and other expenditure payments, is available on Inland Revenue’s tax policy website, www.taxpolicy.ird.govt.nz

Submissions close on 1 February 2013.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Housing Issues: Homelessness On The Horizon For Baby Boomers

Baby Boomers who have held down jobs and contributed to the well-being of New Zealand through their taxes may yet become homeless in late middle age or early retirement without urgent Government action, says The Salvation Army. More>>


Treasury Has Doubts On Christchurch Rebuild And... Auditor-General Follows Up On EQC

Despite the improvements made, EQC could still learn better from complaints and improve its customer focus and interactions... Although the programme is nearing completion, EQC needs to provide the best service possible for the home owners whose homes are still to be repaired. More>>


Man Who Banned 'Into The River' Out The Door: Appointments To The Film And Literature Board Of Review

Internal Affairs Minister Peter Dunne has announced seven appointments to the Film and Literature Board of Review... “The new members of the Board... will provide a strong mix of skills and experience to help the Board carry out its functions, while representing a cross-section of society.” More>>


Climate Marches: New Zealanders March For Solutions Not Pollution

Ahead of the UN Climate Summit in Paris more than 15,000 New Zealanders have taken part in the Peoples Climate march in Auckland, kicking off the largest climate mobilisation the world has ever seen... More>>


Labour: Little Announces New Shadow Cabinet

“Labour had an impressive intake of fresh faces after last year’s election and newest MPs have now had a year to show what they’re made of. This reshuffle rewards hard work and continues my drive to renew our Caucus line up." More>>


Because Reasons: Someone Reckons David Seymour Is Politician Of The Year

Trans Tasman's 11th annual Roll Call has thrown a curve ball this year, ignoring the likes of John Key, Bill English, and Winston Peters to pick its politician of the year from the ranks of the new generation. More>>


Whaling: NZ Deeply Disappointed By Japan's Decision

“New Zealand is strongly opposed to whaling in the Southern Ocean. We call on Japan to take heed of the 2014 International Court of Justice decision and international scientific advice concerning their whaling activities.” More>>


Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news