Proposed Tax Changes
GST on imported low-value goods (Amazon Tax) – From 1 October 2019 it is proposed that offshore suppliers will be required to register (provided they meet the registration threshold of $60,000), collect and return GST in New Zealand on goods valued at or below $1,000 supplied to New Zealanders. This change will have an impact for the price NZ consumers pay for goods once introduced.
Ring-fencing residential property losses – From the 2019-20 income year it is proposed that ring-fencing losses on residential rental properties will result in no longer being able to offset losses against other taxable income (wage/salary earnings, business income, investment etc). It is suggested that losses will be available to offset future year profits; if a taxpayer is liable for tax on the sale of land; and losses can be available to offset profits in a year where there is a portfolio of properties.
Tax Working Group (TWG) – Business tax proposals – These suggestions are being considered by the TWG and include: Changes to the Provisional Tax RIT threshold to increase from $2,500 to $5,000; to extend the Legal Fees approach for tax purposes to not split between deductible and non-deductible expenditure for combined fees of up to $10,000 of all professional fees; changes to the Depreciation calculations and to include allowable depreciation claims for commercial buildings; revisit the tax treatment for deductions in relation to building compliance costs; simplify the FBT regime; simplify the entertainment rules; and relax continuity rules.