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Offshore GST bill has third reading

27 June 2019

The Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill had its third reading on 20 June 2019. Minister of Revenue Stuart Nash introduced the bill on 5 December 2018.

This omnibus bill amends several taxation related Acts and regulations. It sets the income tax rates for the 2019-20 tax year (with no change from last year) and make several other policy and remedial changes.

The new system to collect GST will come into force on 1 December 2019.

Part 2 amends the Goods and Services Tax Act 1985.

Clause 6 inserts new section 4B (Meaning of distantly taxable goods). Clause 7 amends section 5 (Meaning of term supply). A distantly taxable good would generally defined as a good valued up to $1000 that is outside New Zealand at the time of supply, supplied by a non-resident and delivered to New Zealand.

The bill requires that offshore suppliers of low-value goods register for, collect, and return GST when their sales to New Zealand exceed $60,000 (clause 9 amending section 8 replacing s8(3)(a) with s8(3)(a and (ab)).

Clause 38 amends s75 (Keeping of records) to allow tax records to be kept in te reo Māori.

Clause 51C inserts new subpart EL (Allocation of deductions for excess residential land expenditure) to ring-fence tax deductions on rental properties so that they could not be used to reduce tax on other income.

Clauses 67 to 74B amend the Tax Administration Act 1994.

Clauses 76 to 81 amend the Child Support Act 1991.

Clause 77 amends s89Z (Grant of exemption to victim of sex offence) and allows the Commissioner of Inland Revenue to consider other information when exempting victims of sex offences from paying child support for children born as a result of sexual violence (at present, exemptions can only be given where an individual has been convicted of a sex offence). The amendments will apply from the date of Royal assent.

Clauses 83 to 93 amend the Student Loan Scheme Act 2011 and allow Inland Revenue to collect student loan deductions from schedular, election-day, and casual agricultural income, to reduce end-of-year repayment obligations for student loan borrowers. The amendment will take effect from 1 April 2020.

Last updated on the 16th September 2019