Tax Bill Introduced To Simplify Tax System

On 29 June 2018 the Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill was introduced to Parliament.

The Government has stated that one of the purposes of the Bill is to simplify tax returns for individuals who earn employment or investment income only. Under the proposed changes the majority of individuals will no longer need to file a personal tax summary in order to receive their tax refund. The proposed changes for individuals in this Bill mean that from April 2019:

• refunds will be automatically paid out – where Inland Revenue is reasonably confident it has all information about a person’s income and the tax they have paid on it;

• Inland Revenue can use the more timely and accurate information it has to help people pay and receive the right amounts during the year; and

• Inland Revenue will automatically finalise end-of-year tax refunds and payments for as many people as possible without them having to do anything.

Other changes include:

• allowing over 65 year olds to opt-in to KiwiSaver.

• introducing a 6% and 10% employee KiwiSaver contribution rate

• reducing the maximum KiwiSaver contributions holiday from five years to one year

• a new definition for market interest rate for FBT purposes from 1 April 2019

Please give us a call if you have any questions.

Brad Phillips
03 211 3782
021 317 151
bradp(at)mdp.co.nz

Kathryn Ball
03 211 3774
027 454 8414
kathrynb(at)mdp.co.nz

Craig McCallum
03 928 5158
027 698 9511
craigm(at)mdp.co.nz

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