Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008
The Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Bill 2008 was introduced into Parliament on 22 May 2008 and passed under urgency on 23 May. The resulting Act received Royal assent on 29 May 2008. The new legislation gives effect to tax measures announced in Budget 2008 - personal tax reductions to be phased in over three and a half years, and changes to Working for Families tax credits to take account of inflation.
Introduction
The Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Bill 2008 was introduced into Parliament on 22 May 2008 and passed under urgency on 23 May.
Tax cuts for individuals
In Budget 2008, the government announced a series of personal tax reductions to be phased in over three and a half years. The new legislation gives effect to those announcements by reducing the bottom personal tax rate from 15% to 12.5% and raising the thresholds at which tax rates apply.
Working for families tax credits
Working for Families tax credit amounts and abatement thresholds have been increased to reflect rises in the Consumer Price Index (CPI).
Remedial amendments clarifying the rules for registration of charities
Amendments have been made to the Income Tax Act 2007, Tax Administration 1994 and the Estate and Gift Duties Act 1968 to resolve certain tax uncertainties that have emerged in the lead-up to the 1 July deadline for charities to register with the Charities Commission.
Remedial amendments to PIE rules
Several remedial amendments have been made to the portfolio investment entity (PIE) rules. These remedial amendments generally apply from the 2008–09 income year.
Remedial amendments to Kiwisaver rules
The definition of "salary or wages" in the KiwiSaver Act 2006 has been amended to ensure that an accommodation allowance is not treated as salary or wages for KiwiSaver purposes.
Drafting corrections
A number of minor drafting and cross-referencing errors that arise mainly from the rewrite of the Income Tax Act have been corrected.
Annual Income Tax Rates for 2008-09
Schedule 1, part A, of the Income Tax Act 2007
Other policy matters
New double tax agreement with the Czech Republic, new protocol to the United Kingdom agreement, and other tax treaty developments
Date published: 19 Sep 2008
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