Inland Revenue's latest LTIB has been released, which looks at how the tax system may need to adapt to longer term pressures with a particular focus on New Zealand’s aging population. This strategic, forward looking publication doesn’t create immediate compliance obligations. It’s a helpful resource for businesses and investors thinking about long horizon planning, especially where tax settings and fiscal sustainability could influence future policy decisions.
Wellington's severe weather on 18–19 April 2026 has been formally recognised by Inland Revenue as an emergency event for Working for Families purposes. This means certain qualifying relief payments linked to the event can be excluded from family scheme income, helping ensure support payments don’t unintentionally reduce Working for Families entitlements. This applies to relief payments related to the event, for the defined period 18 April 2026 to 31 October 2026.
An information release has been published by Inland Revenue with Cabinet papers and supporting documents about the in work tax credit increase. The supporting material describes a temporary increase of $50 per week (from $97.50 to $147.50) with implementation intended from 1 April 2026, and payments aligned with the pay cycle. For eligible working families, this is direct cash flow support, and the documentation provides useful details about design and implementation timing.
The DRR for attributing interests in FIFs for the 2025–26 income year has been set at 7.84%, down from 8.04% last year. You can find the supporting determination (DET 26/04) here.
IRD has updated the FIF Australian listed share exemption tool for the 2026 tax year. If you hold shares in an Australian company listed on the ASX and you’re relying on the exemption, it’s worth reconfirming eligibility for the 2026 year.
Inland Revenue and NZ Customs are consulting on an information sharing agreement that would allow border movement information to be used to help reduce Working for Families overpayments and resulting debt when families leave New Zealand or spend extended time overseas. Submissions close on 5 June 2026. If implemented, this may also mean faster detection of changes in eligibility and more proactive compliance follow up.
Inland Revenue and MSD are consulting on changes to their information sharing agreement. The proposal would remove the current requirement for MSD to give 10 working days’ notice to dispute information before MSD takes certain adverse actions (for example, reducing or stopping a benefit) based on shared information. The stated aim is fewer overpayments and less client debt. The announcement also notes a future direction where PAYE information could be used from July 2028 to help assess eligibility and calculate income tested assistance, reducing the need for clients to separately declare PAYE income to MSD.
Feedback is being sought by Inland Revenue about proposals for a regulatory framework for entities that help customers meet tax obligations and access social policy entitlements (intermediaries). The paper also explores allowing intermediaries to provide services enabling them to calculate income tax and make payments throughout the year on behalf of customers. Submissions close on 12 June 2026. Over time, this could change how some taxpayers interact with the system particularly around in year tax calculations and payments.
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This issue of Tax Watch covers the tax implications for businesses that provide sponsorship, a compliance reminder about crypto assets, and the latest submission to Inland Revenue's 'Questions we've been asked' publication.
A global minimum tax has been introduced, which ensures that large multinationals pay at least 15% tax in all the jurisdictions they operate. This will have the effect of “reducing the incentive for profit shifting and placing a floor under tax competition, bringing an end to the race to the bottom on corporate tax rates,” as the OECD explains.
For retirement villages, there’s one area of complexity where the correct treatment can really pay dividends, and that’s GST. However, it can get complicated for retirement village operators; it’s easy to get wrong and can be very expensive to fix.
