Dunne changes rules for GST rate change
Law changes to cut compliance costs around the upcoming GST rate change tax are among "business friendly" changes being made to a key piece of tax legislation, Revenue Minister Peter Dunne says.Mr Dunne has tabled the amendments to the Taxation
Law changes to cut compliance costs around the upcoming GST rate change tax are among "business friendly" changes being made to a key piece of tax legislation, Revenue Minister Peter Dunne says.
Mr Dunne has tabled the amendments to the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver and Remedial Matters) Bill which is going through Parliament.
The changes will be put into the bill when it comes up for its committee stage.
Mr Dunne said the GST transitional measures focused on contracts that straddled the October 1 rate change date, when it goes up from 12.5 percent to 15 percent.
Some arrangements such as insurance, finance leases and lay-by contracts that straddle the date will be able to continue at the 12.5 percent rate for a transitional period to reduce compliance costs.
Another provision extends the remission of late payment penalties and the associated interest for GST returns to cover the period immediately before October 1.
Mr Dunne is also going to repeal the fund withdrawal tax, rather than phasing it out which he said would have involved significant compliance costs.
The repeal will apply to all superannuation fund withdrawals from April 1 this year.
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