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


Dunne: New Tax Bill For Fairer Tax System, Stronger Economy

Hon Peter Dunne

Minister of Revenue

Thursday, 13 September 2012 Media Statement

Dunne: New Tax Bill For Fairer Tax System, Stronger Economy

A new tax bill introduced to Parliament today continues the Government’s focus on ensuring everyone pays their fair share of tax, while continuing to support the economy, Revenue Minister Peter Dunne said.

The Taxation (Livestock Valuation, Assets Expenditure and Remedial Matters) Bill includes supporting provisions proposed to the livestock valuation rules which made elections to use the herd scheme generally irrevocable.

“The situation had previously been too loose, allowing some farmers to switch between the two main livestock valuation methods to receive an unfair tax advantage over those farmers who applied the rules as they were intended,” Mr Dunne said.

The core herd scheme irrevocability rule was enacted as part of Budget 2012 legislation. This bill details the exception to this. The proposed new rules for the disposal of herd scheme livestock are also detailed.

The bill also contains a proposal to tighten the rules for deducting costs of assets such as holiday homes, boats and aircraft that are used by the owner, both privately and to earn income. The proposal was announced in Budget 2012 and has been consulted on publicly.

Mr Dunne said it is a complex matter.

“It is important that the so-called mixed-use rules work properly when the property is held in a company. Achieving this is not straightforward as companies are generally allowed automatic tax deductions for interest expenditure. As a result the bill proposes rules that apportion company interest deductions,” he said.

Mr Dunne said that the bill also had a focus on helping businesses.

“It is important to the Government that New Zealand businesses are supported in becoming more competitive against the rest of the world,” he said.

“Our current GST laws can present an obstacle to that and we need to address this to stay globally competitive. GST is a tax on consumption—not a tax on business and therefore should be neutral for both resident and non-resident businesses.

“The bill proposes to allow non-resident businesses to register for, and claim back, GST in a broadly similar way to a comparable resident business,” Mr Dunne said.

Another GST issue affecting global trade will be resolved in the bill.

Where a New Zealand resident manufacturer charges an overseas customer for the creation or modification of tools required to produce specific exported products, a new rule is proposed that will allow these tooling costs to be zero-rated for GST.

The bill also confirms that farmers’ riparian planting is immediately deductible. Also the rules concerning the tax treatment of certain capital payments and receipts, and capital losses in the horticultural industry, are clarified. These will generally help those kiwifruit orchardists affected by the Psa virus.

In addition, donee status is proposed for three organisations: The Hunger Project New Zealand, OneSight New Zealand, and Fund for Timor.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Populism’s Changing Of The Guard, Plus A Soul Music Playlist

The weekend’s Newshub/Reid Research poll results - Act up to 11.1%, National up 1% but still sitting at only 28.7%, Labour down to 43%, the Greens up to 8.5% - shows that the combined centre right vote is still languishing nearly 12 points behind the combined centre-left vote, 45 months after the last centre-right government was voted out... More>>


Finance: Finance Minister And RBNZ Governor Agree To Update MOU On Macro-prudential Policy

Finance Minister Grant Robertson and Reserve Bank Governor Adrian Orr have updated the Memorandum of Understanding (MoU) on macro-prudential policy to further protect the financial system and support the Government’s housing objectives... More>>

Government: Offers Formal Apology For Dawn Raids
Prime Minister Jacinda Ardern has today formally apologised to Pacific communities impacted by the Dawn Raids in the 1970s.

Between 1974 and 1976, a series of rigorous immigration policies were carried out that resulted in targeted raids on the homes of Pacific families... More>>

Government: Bill Introduced To Protect Against Conversion Practices

Legislation has been introduced to Parliament to protect against practices intended to change or suppress someone’s sexual orientation, gender identity, or gender expression... More>>


Human Rights Commission: Successive Governments Responsible For Massive Breaches Of The Right To A Decent Home

Te Kahu Tika Tangata / Human Rights Commission has today launched Framework Guidelines on the Right to a Decent Home in Aotearoa and announced that it will hold a national inquiry into housing... More>>

NZUS Council: Welcomes Nomination Of Senator Tom Udall As US Ambassador To NZ

The NZUS Council welcomes the nomination of Senator Tom Udall to the role of US Ambassador to New Zealand and Samoa, NZUS Council executive director Jordan Small said... More>>

BusinessNZ: Visa Extensions Welcomed
BusinessNZ has welcomed the extension of some critical skill visa durations and changes to immigration systems to speed processing. Chief Executive Kirk Hope says move acknowledges advocacy by the hospitality sector, the BusinessNZ Network and others, and comes not a moment too soon.... More>>




InfoPages News Channels