Tax Bill Passed to Boost Growth
The House has today passed legislation which contributes to the Government’s focus on driving growth and providing the environment which allows businesses to thrive, Revenue Minister Simon Watts says.
“The Taxation (Annual Rates 24-25, Emergency Response, and Remedial Measures) Bill which passed third reading today, will support businesses setting up or looking to grow, who need access to capital and need a pool of talented people.
“Start-ups often have challenges with cashflow, which can make it hard to attract and keep talent, especially when competing with larger, better resourced companies. One way to address this challenge is through employee share schemes. Under this new legislation, we have improved the tax rules by raising the thresholds for exempt employee share schemes, to recognise the effect of past inflation and to provide a buffer against future inflation.
“A better performing employee share scheme means New Zealand companies can be more competitive, helping them attract top talent. It will make it easier for start-ups to grow and thrive, supporting our economy to grow by creating more jobs and supporting innovation.
“Another key feature of the legislation streamlines the way tax relief is applied for future emergency events including floods and earthquakes. By activating tax relief by Order in Council rather than relying on primary legislation, relief can get to those who need it in an emergency more rapidly.
The Government also has replaced the first-year fees-free scheme with a final-year fees-free scheme.
“It’s important we incentivise students to complete their study so we can have a more skilled workforce. A skilled workforce means we can increase productivity and foster innovation and therefore, grow the economy,” Mr Watts says.
“To enable a final year fees-free scheme, we have passed legislation allowing data collection and sharing between Inland Revenue and the Tertiary Education Commission, which will allow the two agencies to assess learner eligibility and to enable entitlements to be paid to eligible learners.
Other measures in the Act include:
https://www.beehive.govt.nz/release/tax-legislation-passed-support-growth