OFFICE OF THE MINISTER OF FINANCE
OFFICE OF THE MINISTER OF REVENUE
CABINET
TAXATION (BUDGET TAX MEASURES) BILL - APPROVAL FOR
INTRODUCTION
EXECUTIVE SUMMARY
1.
This submission seeks Cabinet approval for the introduction and advancement to
enactment under urgency of legislation to implement the changes to tax policy described in
paragraph 2.
PROPOSAL
2.
The proposed bill contains provisions to:
•
repeal the final two tranches of the personal tax cuts enacted in December 2008 with
effect from 1 April 2010 and 1 April 2011;
•
repeal the increase from 1 April 2010 in the amount of the weekly independent earner
tax credit, also enacted in December 2008; and
•
close the KiwiSaver mortgage diversion facility to new participants from 1 June 2009.
3.
The proposed bill has no formal priority in the 2009 legislation programme.
4.
The proposed bill will introduce amendments implementing the policies listed in
paragraph 2 to the following legislation:
•
Taxation (Urgent Measures and Annual Rates) Act 2008
•
Taxation (Business Tax Measures) Act 2009
•
KiwiSaver Act 2006
•
KiwiSaver Regulations 2006
POLICY
5.
Cabinet decided that the second and third tranches of our planned tax cuts should be
delayed. One way to signal that this is a delay of the cuts, and not simply a cancellation,
would be to combine the repeal with a provision to allow the cuts to be reinstated by order-in-
