At the core of the law is a "streamlined" method of providing tax relief in future emergencies
The Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill, which was drafted with the goal of boosting the country’s economy, has passed its first reading.
“A key feature of the bill is a streamlined process for applying tax relief in response to future emergency events, such as earthquakes and floods. This new approach will allow these relief measures to be activated by Order in Council, rather than requiring new legislation for each event”, Revenue Minister Simon Watts said. “This change will facilitate a faster government tax response to emergencies, providing earlier certainty for affected taxpayers. A quicker response supports a quicker recovery, and the Government aims to ensure the system is ready in advance of any emergency.”
The bill also pitches the following measures:
- simplifying the process of transferring pension funds from selected countries, including the UK, to New Zealand schemes
- ensuring eligible businesses’ access to capital for growth purposes through permitting borrowers to register retrospectively for the approved issuer levy in specific circumstances
- supporting the tech sector and start-ups by raising the thresholds for exempt employee share schemes
“The government is also proposing changes to support young people in securing their economic futures. One proposal would allow individuals under 16 to enrol in KiwiSaver with the signature of just one guardian, rather than requiring the consent of all guardians, which can be challenging when parents are separated”, Watts added. “While there are signs of the economy moving in the right direction, there is still work to be done. This bill includes several additional measures intended to strengthen the economy and deliver benefits across the board.”
