Proposed Tax Changes
GST on imported low-value goods (Amazon Tax) – From 1 October 2019 it is proposed that offshore suppliers would be required to register, collect and return GST to New Zealand I.R.D. on goods valued at or below $400 supplied to New Zealanders. The registration would be required if the supplier meets the registration thresholds. The current method of collection for GST via the Customs Department for goods valued at over $400 would continue.
Ring-fencing residential property losses – From the 2019-20 income year it is proposed to ring-fence losses on residential properties held by speculators and investors meaning that losses will no longer be available to offset other taxable income (wage/salary earnings, business income, investment etc) to reduce tax. Losses may be available to offset future year profits and it’s suggested that losses, where there is a portfolio of properties, may be available to offset profit across a portfolio rather than on a property basis.