The Taxation (Annual Rates for 2018-19, Modernising Tax Administration and Remedial Matters) Act 2019, came into effect on 18 March. As well as introducing the annual rates for the year the Act also introduces measures to “simplify” some processes for taxpayers.
Among the changes include:
- Setting the annual tax rates for the 2018/19 tax year
- Adding new KiwiSaver contribution rates of 6% and 10% and makes the savings scheme accessible to those aged over 65
- Allowing depreciation roll-over relief for properties affected by the Canterbury earthquakes in 2010 and 2011 by extending the deadline for obtaining the replacement property from the end of the 2018/19 income year to the end of the 2023/24 income year
- Allowing new racehorse investors to claim tax deductions if they purchase a standout yearling
- Granting overseas donee status to several new donee entities
- Clarifying new IRD powers in relation to the use of taxpayer information
- Simplifying and shortening the binding ruling process for small businesses so they can more easily apply for a binding ruling from Inland Revenue on any tax matter
- Addressing unintended gaps in the current law governing the tax treatment of not-for-profit entities
- Exempting directly-funded disability support payments from income tax
- Addressing company de-merger rules applying to some situations.