New Zealand’s government introduced a bill that includes measures concerning goods and services tax (GST) rules for low-value imports and the tax treatment of residential rental properties.
The proposals in the legislation—Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill—include:
Both of these changes have previously been consulted on and policy decisions announced. The draft legislation does not contain any further significant changes.
The rental loss ring-fencing changes will apply in full from 2019-20, rather than being phased in (this was one of the issues consulted on). The loss ring-fencing proposal overlaps with the Tax Working Group’s consideration of capital gains and the impact of the tax system on housing affordability (a final report is due February 2019).
The new bill has not yet been referred to the Select Committee for consideration and submissions from the public. Typically, the Select Committee has a six-month deadline to report a bill to Parliament for further debate and enactment. This suggests enactment in June 2019—thus, leaving very little time for systems and commercial changes to be made.
For more information, contact a tax professional with the KPMG member firm in New Zealand:
Peter Scott | +64 9 367 5852 | email@example.com
John Cantin | +64 4 816 4518 | firstname.lastname@example.org
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