Yesterday the Government tabled the Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Bill.
The Bill contains over one hundred policy and remedial amendments, although that latter classification is more appropriate for some changes than others. We have not attempted to cover them all. Below is a summary of some of the key changes. Not all will be relevant to you or your business but, given the range, it is likely that some may. That's why it is a “liquorice allsorts” type of Tax Bill. It has something for everyone.
As always, with draft tax legislation, the devil is inevitably in the detail. And at over 100 pages it will take some time to work through.
And there is likely more to come for this Bill. In June, the Government consulted on two aspects of its March housing tax changes – the design of interest limitation rules for residential property and the “new build” exemption. We expect draft legislation on these design features will be added to the Bill later this month. The interest limitation rules apply from 1 October this year.
The inclusion of GST in the title means that it is a key focus. The Bill:
These changes were largely signalled in an issues paper released in February 2020 (yes, just before COVID hit New Zealand). There are a number of other proposed changes raised in that issues paper still under active consideration. These are some of the more challenging issues. They include the GST treatment of insurance and managed funds and further changes to the apportionment rules.
The Bill contains an assortment of income tax changes, including:
And there is one other amendment that deserves a special mention. The Bill proposes that fax will be removed as an approved method of communication with Inland Revenue, marking the end of an era.