New measures included in this latest Taxation Bill include:
- A Residential Land Withholding Tax (RLWT) applicable on sales of residential property by offshore persons who sell the property within two years of acquisition, applicable to property purchased after 1 October 2015.
- New Zealand and Australia to share information on student loan accounts to enforce repayment obligations by defaulters.
- The requirement for non-resident suppliers of services to New Zealand residents to register for New Zealand GST once supplies of services exceed NZ $60,000 in a 12 month period.
‘The RLWT proposal in the bill, together with the new bright-line test and changes to collect better tax information about buyers and sellers of residential property will help to ensure that everyone pays their fair share of tax on gains from property sales’, said Revenue Minister Todd McClay in his media statement.
The RLWT will be effective from 1 July 2016 – 17 November 2015.