Parliament

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

 

Two-month extension for fairer GST regime

Offshore businesses that supply low-value goods to New Zealand have been granted a two-month extension to get systems in order for a new method to collect GST.

Revenue Minister Stuart Nash confirmed Cabinet has agreed to the Finance and Expenditure Committee’s recommendation to extend the start date. The Committee heard public submissions on the Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill.

“The new system to collect GST was due to take effect on 1 October 2019. It will now come into force on 1 December 2019,” Mr Nash says.

“The Government has agreed to the change in recognition that offshore businesses want to comply with the law but need time to adapt their IT and accounting systems.

“Offshore businesses who supply more than $60,000 of low-value goods per year into New Zealand will pass on GST directly to Inland Revenue.

“The legislation ensures offshore suppliers are on a level playing field with domestic retailers. There are 26,000 small businesses in the retail sector employing more than 62,000 people. They are required to collect GST on all sales. The same requirement will now apply to offshore retail giants.

“GST has always been payable on purchases from overseas but administration and collection costs have been prohibitive for Customs. The GST on goods valued above $1000 will continue to be collected by Customs at the border.

“The internet has opened up more markets for global companies but if they want to do business here they must follow the rules like everyone else. We’re not the first country to introduce such a rule and eventually this will be the new reality of doing business,” Mr Nash says.

It is estimated the tightening of the GST system will collect approximately $126 million in revenue per year by 2022/23.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Campbell on: the local body election result in Wellington

For obvious reasons, politics is more of a big deal in the capital city than anywhere else in the country. Even so, fewer than four in ten eligible voters bothered to vote in Saturday’s local body elections in Wellington (turnout 39.66%).

Even less was felt to be at stake this time around than in 2016, when 45% of the electorate voted Justin Lester into the mayoralty.

To put it mildly, the Lester-led Council failed to live up to expectations. Lester will be remembered mainly for the fact that somehow, he managed to lose this election. . More>>

 
 

Could Do Better: Post-Sroubek Review Of Deportation Info

Ms Tremain acknowledges that the review highlighted some aspects of the process that can be improved and makes five main recommendations to strengthen the existing processes for preparing files for decision-makers. Those recommendations are: More>>

ALSO:

Gordon Campbell: On A New Book On The Leaky Homes Scandal

We all know that journalism is short of cash and under pressure from the speed, brevity and clickbait pressures of the 24/7 news cycle… but hey, given the right subject and a sufficiently stubborn journalist, it can still surpass most of the works of the academic historians... More>>

Regulation: Review Finds NZTA Road Safety Failings

The independent review, carried out by consultant agency MartinJenkins, lists at least 10 reasons for the failures including the agency being focused on customer service at the expense of its policing functions. More>>

ALSO:

Rod Carr: Climate Change Commission Chair-Designate Announced

Climate Change Minister James Shaw has today announced the appointment of Dr Rod Carr as Chair-designate for the Climate Change Commission. More>>

ALSO:

Compliance Complaints: 'Putting Right' Holidays Act Underpayment In Health

The Government is putting right a decade’s worth of underpayment to nurses, doctors and other health workers, says Health Minister Dr David Clark. More>>

ALSO:

IPCA: Disasterous Police Pursuit, Excessive Use Of Dogs

At no stage did Police follow the correct procedure for the commencement of a pursuit... A Police dog handler used his dog to help with the arrest of two of the young people. One suffered injuries resulting in his hospitalisation, and the Authority found that the use of the dog was an excessive use of force. More>>

ALSO:

‘Hard Place To Be Happy’: Report On Youth Residential Care

Children’s Commissioner Andrew Becroft says the report, A Hard Place to be Happy, contains important challenges from children and young people, aged 9 to 17, about their experiences in care and protection residences. “I found this report extremely difficult to read, and I think most New Zealanders would too.” More>>

Africa And Middle East Refugees: 'Family Link' Restriction Removed

The founder of the Double the Quota campaign has applauded the coalition government for Friday’s announcement that a discriminatory policy would be removed. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels