Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Inland Revenue Seeks Views On New Tax Rules

20 October 2004

Inland Revenue Seeks Views On New Tax Rules For Private Boarding Arrangements

Inland Revenue has launched consultation on a proposed change to the tax rules for people who host paying boarders.

Under the existing practice people are not required to return their income if they have one boarder, but must usually pay tax at a rate of 20% if they have two to four boarders, and return income and claim expenditure in the normal way for businesses if they have more than four boarders.

Inland Revenue has been talking with industry players in order to draft a proposal, which has now been launched for wider consultation. The proposal bases tax liability not on the number of boarders, but on the amount of income people receive.

The proposed change also sets out a series of 'standard costs' that people can use when claiming tax deductible expenses to off-set against their income. If people choose to use these 'off-the-peg' costs for their expenditure, it will make completing and filing tax returns easier, as they will no longer have to keep detailed receipts.

Deputy Commissioner (Service Delivery) Naomi Ferguson said: "We believe the current rules need to change as they aren't up to date with today's environment. Our proposal corrects an anomaly where someone could have a similar - or even larger - income than some small businesses, yet not be obliged to file a tax return.

"Under our proposal, people who are already returning their income for tax purposes will not have to pay more - they may in fact pay less tax. They will find it easier to fill out returns and claim expenses. The only people who might have to pay more tax are those who are making a substantial profit after expenses, and haven't been returning that income. We consider that there is no reason why these people shouldn't have to pay the same rate of tax as people who make their money in other ways.

"The purpose of this is to make it easier for taxpayers to meet their obligations.

"These issues are all up for discussion, and we encourage people to contact us with their views and ideas."

For a copy of Determination ED - 0070 and an explanation of the proposal, please see the Inland Revenue website at People who want to make submissions are invited to send their comments - using the draft reference as the subject, and including your name and organisation by email to, or by post to: the Manager, Field Liaison & Communication, Adjudication & Rulings, Inland Revenue, PO Box 2198, Wellington.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>