Introduced on Feb 16, 2021. The Bill sets up a new system of covid support payments for businesses hit by covid lockdowns of level 2 or over. As announced in Dec this includes includes a grant at a core per business rate of $1500 plus $400 per employee up to a total of 50 FTEs ($21,500) for firms experiencing a 30 percent drop in revenue. This is not tied to the payment of wages and firms with more than 50 FTEs can apply up to the maximum and is nationwide not tied to a region. However, it is capped at the amount of revenue lost. One change made since the Dec announcement is eligibility is over a 7 day period not 14. This will be calculated by comparing a seven-day period at alert level 2 or higher with the typical weekly revenue in the six weeks before the move from alert level 1. The Bill passed through all stages under Urgency and supported by all parties.
Taxation (COVID-19 Resurgence Support Payments and Other Matters) Bill

Introduced on Dec 1, 2020. The Bill introduces a new top personal income tax rate of 39% on annual income over $180,000 with accompanying changes to other imposts such as fringe benefit tax. Also gives powers for the IRD to investigate the historical activities of trusts for the purpose of policy formation. Passed through all stages under Urgency with National and ACT opposed. The Greens abstained saying there needed to be a capital gains tax as well or house price inflation will be further exacerbated.  Taxation (Income Tax Rate and Other Amendments) Bill

An annual tax credit for resident married, civil union or de facto couples responsible for an under-18 dependent child. Under the bill, couples with dependent children would be assessed for tax according to household income as opposed to individual income as is currently the case. For example, a couple where one individual is employed earning $100,000 would face the same tax burden as a couple who earn $50,000 each. The bill was part of National’s deal with United Future which allowed for it to go to select committee. The select committee supported the policy intent but requested much more research in its report back to Parliament. First reading Oct 2010 with select committee report back in March 2011 been awaiting second reading ever since.  Bill lapsed as it was not reinstated in the 52nd Parliament. Taxation (Income-sharing Tax Credit) Bill

Introduced Dec 1 and received its first reading on a voice vote and was referred to Finance and Expenditure Committee with a report back date of April 28. The main proposals relate to the withdrawal of member tax credits for KiwiSaver members purchasing their first home, and corrections to the tax, social policy, and KiwiSaver treatment of income replacement payments for some veterans and other claimants. Reported back early on March 13 with minor amendments. Despite objections over the details and debate over whether it would have a positive effect, the bill passed its third reading on March 26 with general support.  Taxation (KiwiSaver HomeStart and Remedial Matters) Bill

Introduced on June 27. A tax omnibus bill mainly making administrative changes to KiwiSaver and student loans. Also extends the refundability of research and development tax credits. Completed first reading on July 23 and sent to the Finance and Expenditure Committee with just ACT opposed. Reported back on Dec 18 with a large number of changes including allowing the early pay out of KiwiSaver funds for those with congenital diseases, R&D credits, PIE tax treatment and student loan deductions. Second reading on March 4 and committee stage on March 11. Still opposed by National. Third reading on March 17 completed with no party opposing. Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

Introduced on June 22 and received its first reading on June 25. Authorises some of the measures announced in Budget 2015 around property purchases and tax rules. Under the bill any “offshore person” buying a second home would have to provide an IRD number and bank account details. This would allow IRD to track purchases and sales of real estate and tax them accordingly. The bill was sent to the Finance and Expenditure committee with a truncated report back date of August 17. Parties supported the bill but not the shortened select committee consideration. Reported back from select committee on August 14 with a number of changes, mostly around the definitions of “main home”, “offshore person”, as well as rules around exemptions and what information should be collected. Labour indicated support for the bill despite concerns it created too many loopholes while also imposing unnecessary compliance costs. Completed committee stage on Sept 9 and given third reading on Sept 10. All parties with the exception of NZ First supported though Labour and the Greens said it was ineffective and full of loopholes. The Government indicated a third bill was on the way to deal with the treatment of withholding tax on property speculation. Taxation (Land Information and Offshore Persons Information) Bill

Introduced on Dec 6. The Bill seeks to prevent multinationals from using;  artificially high interest rates on loans from related parties to shift profits out of New Zealand (interest limitation rules), artificial arrangements to avoid having a taxable presence (a permanent establishment) in New Zealand, transfer pricing payments to shift profits into their offshore group members in a manner not reflecting the actual economic activities undertaken in New Zealand and offshore; and hybrid and branch mismatches exploiting differences between countries’ tax rules to achieve an advantageous tax position. First reading debate held on Dec 12 with all parties agreeing to send the Bill to the Finance and Expenditure Committee. Reported back on May 15 with a number of changes. These included amendments around the attempts to limit artificially high interest rates on loans from related parties to shift profits offshore and other artificial arrangements. There are also changes to related party transactions rules and hybrid and branch mismatches exploiting differences between countries’ tax rules to achieve an advantageous tax position.Second reading completed on May 23 and committee stage interrupted on June 12. Committee stage completed on June 21 and third reading on June 26. All parties in support. Taxation (Neutralising Base Erosion and Profit Shifting) Bill

Introduced on Oct 25, the bill amends the Income Tax Act and the Tax Administration Act to introduce a research and development tax credit. To be eligible for a tax credit, an eligible person must spend at least $50,000 on research and development in a year. The maximum amount of expenditure eligible is $120m, unless previously approved. The tax credit is equal to 15% of eligible expenditure. Completed reading on Nov 1 and sent to the Finance and Expenditure Committee with an April 1, 2019 report back. Only ACT opposed the Bill, but National indicated its support was conditional and only to select committee.Sent to the Finance and Expenditure Committee. Reported back on April 3 with a large number of changes around eligibility, definitions and procedures including lifting the internal software development cap from $3m to $25m. Second reading completed on April 11 with National opposed on design and cost. Committee stage completed on April 30 with govt introducing some technical changes. Third reading completed on May 2 with National remaining opposed.  Taxation (Research and Development Tax Credits) Bill

Introduced on Nov 16 the bill proposes a new residential land withholding tax to act as a collection mechanism for the bright-line test. It also provides for the sharing of information between IRD and the Australian Taxation Office in relation to NZ student loan borrowers residing in Australia. It also proposes the collection of GST on cross-border services and intangibles, including internet downloads and online services. The wider issue of the collection of GST on small value imports has been pushed back into a discussion document next year. Only NZ First voted against the bill at its first reading on December 8, mainly because the GST collection provisions did not go far enough. Labour MPs also expressed support for wider GST collection on imports and doubts around the effectiveness of the bright line provisions. Referred to the Finance and Expenditure committee with submissions closing on January 26. Select committee reported back on March 21. Changes have been made around the administration of the withholding tax, including a new definition of an “offshore person”. Many submissions focussed around difficulties in the new tax and potential unintended consequences. The bill completed its second reading debate on March 31 with just NZ First opposed. Committee stage completed on April 12 with no further amendments. Third reading debate interrupted on May 3 and completed on May 10 by 109 to 12 with NZ First opposed. Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill

Introduced on June 30. The bill intends to make the tax system simpler. Amongst other things it lifts the automatic refund threshold, rewrites law to allow IRD to communicate in other ways than in writing or by post, simplifies the tax rules for employee share schemes from 1 July this year allows pooling method of depreciation to include assets valued up to $5,000 up from $2,000. Received its first reading on October 13 and with the support of all parties was sent to the Finance and Expenditure Committee for consideration. Reported back on March 21 with minor amendments. Second reading debate interrupted on March 31 and completed on April 12 on a voice vote. Committee stage interrupted on May 10 and completed on May 24. Third reading completed on May 30 by a voice vote. Taxation (Transformation: First Phase Simplification and Other Measures) Bill