Govt Introduces Taxation Bill to Strengthen Economy and Support Future Resilience

Minister Watts emphasized that the Bill aligns with the Government’s commitment to improving economic conditions in New Zealand.

The New Zealand Government is continuing its efforts to bolster the economy and provide a more secure future for businesses and individuals, as highlighted by Revenue Minister Simon Watts. The latest measure, the Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill, has passed its first reading in Parliament.

Minister Watts emphasized that the Bill aligns with the Government’s commitment to improving economic conditions in New Zealand. A key feature of the Bill is a streamlined approach to applying tax relief for future emergency events, such as earthquakes and floods.

“The Bill proposes that tax relief can be activated by Order in Council, rather than relying on primary legislation, which will lead to a quicker government response and faster recovery for those affected,” said Minister Watts. “This will provide earlier certainty for taxpayers during emergency events and ensure that the system is prepared in advance.”

In addition to enhancing emergency response measures, the Bill introduces provisions aimed at supporting the economic future of young people. One such provision will allow individuals under 16 to enroll in KiwiSaver with the signature of just one guardian, simplifying the process, particularly for children of parents who are separated.

“We want to help young people secure their economic future by making it easier for them to start saving early,” Minister Watts explained.

The Bill also includes several other measures designed to strengthen the economy and support businesses:

Pension Fund Transfers: It will become easier to transfer pension funds from selected countries, including the UK, to New Zealand schemes.

Business Capital Access: Eligible businesses will have improved access to capital by allowing borrowers to register retrospectively for the approved issuer levy in certain circumstances.

Support for the Tech Sector: The Bill proposes increasing the thresholds related to exempt employee share schemes, which will particularly benefit start-ups and the tech sector.

Minister Watts noted that the Government passes legislation annually to set tax rates for the following year and to introduce changes that simplify the system and boost productivity. “We have started to see signs of our economy moving back in the right direction, but it is not job done. This Bill includes various changes to ensure we’re all better off,” he added.