In case you did not attend this year’s CAANZ tax conference, the traditional Minister of Revenue’s keynote address to the audience included the following comments:
- There is priority towards getting the flexi-wage scheme up and running by the end of 2020. This is essentially a wage subsidy programme that assists employers to hire and help people with training or mentoring to gain the skills for a job
- The 39% top personal tax rate on income above $180k will kick in from April 1st – more on this below
- Significant international concerns regarding the under-taxation of digital MNE’s will hopefully be lessened by an OECD-led multilateral solution to be announced mid-2021. The alternative, less preferred option presently for NZ, is to go it alone and address the issue with its own digital services tax (DST)
- Two taxation Bills are presently in the pipeline, both likely to be passed pre-31 March 2021 – the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill, and the Child Support Amendment Bill
- The final stage of IR’s business transformation program was nearing completion, to launch in March 2021 and deliver improvements to paid parental leave, child support, unclaimed monies, duties, and foreign trusts activity.