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Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill

Introduced on June 28.¬†An omnibus bill amending a number of tax Acts. It confirms the annual rates of income tax for the 2018/19 tax year, contains proposals to modernise and improve the administration of the tax system. Amongst the changes are the rules around secondary tax, automatic refunds for many people whose only income is from salary, wages, or investment. The bill clarifies that information collected for one Inland Revenue purpose can be used for the department’s other functions. There is also the introduction of a short process ruling, where small businesses can more easily apply for a binding ruling from Inland Revenue on a broad range of matters. This bill also provides the Commissioner of Inland Revenue with more flexibility to correct anomalies in the tax legislation. The bill also proposes a suite of changes to KiwiSaver as a result of the Retirement Commission’s 2016 review of retirement income policies. These changes range from introducing more choice for employee contribution rates to making it easier for our older working population to join and stay in KiwiSaver. First reading completed on July 3 with National opposed saying while it supported much of the Bill it could not support the Government’s wider tax programme. Referred to the Finance and Expenditure Committee. Reported back on Jan 16. Powers for the Commissioner to amend tax legislation have been dropped and there are many technical changes. Second reading interrupted on Feb 14 and completed on Feb 19 with National, ACT and Ross opposed. Committee stage completed on March 5 and the third reading on March 12 with the Government highlighting changes to secondary tax treatment. Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill