To provide transparency about how decisions are made in the lead up to the enactment of legislation, Inland Revenue has issued the following information releases.
Working for Families tax credits and family scheme income
This interpretation statement explains who is eligible for Working for Families tax credits and how to calculate family scheme income, which determines entitlement. Family scheme income starts with net income and is adjusted for certain items such as trust and company income, some child income, maintenance payments, overseas pensions, and other financial support. It also notes that from 1 April 2027, legislative changes will simplify the calculation and increase the “other payments” threshold from $5,000 to $8,000.
Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2026
These cover the changes made to infrastructure thin capitalisation rules, tax debt reduction initiatives, student loan interest relief, GST bad debt deductions, and various remedial tax amendments.
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2026
This information release contains Inland Revenue advice, Cabinet documents, and Cabinet decisions that led to the amendment regulations being approved in February 2026.
The amendment regulations reduce the prescribed interest rate used for FBT purposes on employer-provided loans, reflecting lower market interest rates.
Consumers Price Index updates
Inland Revenue has released its annual adjustments to standard cost amounts for household services for the 2026 income year.
Childcare providers
The hourly standard cost childcare providers can use for the 2026 income year has increased to $4.70 per child and the annual administration and record-keeping standard cost to $460, reflecting a 3.1% increase in the Consumers Price Index for the year to March 2026.
Short-stay accommodation
This daily standard cost has increased to $65 per guest for owned dwellings and $59 per guest for rented dwellings, reflecting the 3.1% increase in the Consumers Price Index for the year to March 2026.
Household boarding service providers
The weekly standard cost for boarding service providers in the 2026 income year has increased to $245 per boarder, reflecting the 3.1% increase in the Consumers Price Index for the year to March 2026.
Earlier this year, Inland Revenue released a consultation paper about the tax treatment of software expenditure. If your business continues to invest in SaaS and other cloud platforms, potential reforms aimed at simplifying the rules and reducing compliance costs could be on the way. Tax Partner, Sam O’Connor explains why the treatment of software is under review and the practical steps your business can take now to stay ahead of any changes that might be on the horizon.
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.
