New Zealand Law Society - KiwiSaver and student loan tax bill passes

KiwiSaver and student loan tax bill passes

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Parliament has given a third reading to the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill. This will come into force on the date it receives the Royal assent, except for a number of provisions which are deemed to have come into effect or will come into effect on dates between 1 April 1984 and 1 April 2022.

The legislation amends 12 different statutes. Its policy focus covers three main objectives: to continue the Government’s simplifying and modernising of social policy administration; to further improve the allocation of the broad-based, low-rate framework; and to further encourage research and development expenditure.

The bill makes a number of changes to improve the administration of the KiwiSaver scheme. These changes facilitate faster transfers of funds, improve the administrative efficiency and enhance members’ experience with the scheme.

The bill also makes changes to extend the refundability of research and development tax credits. These changes are intended to apply from the 2020–21 income year.

It also makes five student loan policy changes. These changes seek to improve the administration of the student loan scheme.