New Zealand

Details

  • Service: Tax
  • Type: Business and industry issue
  • Date: 3/10/2012

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Rebecca Armour

Director - Tax

+64 9 367 5926

rarmour@kpmg.co.nz

Tax

Our tax advisory team has the skills and commitment to help you to be competitive and compliant in all areas of business tax.

Taxmail - Salary trade-off tax proposals narrowed 

Issue 2, October 2012

 

The Government has announced that the proposals to tax salary trade-offs will be narrowed.  These changes have been made in response to public concerns about the proposals’ workability.  The rules now target only Auckland and Wellington CBD car parks and vouchers issued by charities, rather than all explicit and implicit salary sacrifice benefits as originally proposed.  

 

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We  welcome the changes to make the proposals more workable. 

 

The original proposals cast the net too wide and did not take account of the compliance costs to employers from implementing the new rules.  However, there still remains much detail that needs elaboration. 

 

Individuals will also need to be aware of the impact the  proposals will have on their income for social assistance (e.g. Working for Families entitlements and student loan and child support payments).

 

If you have any questions regarding this taxmail, please contact your usual KPMG advisor, or:

 

Murray Sarelius
Partner - Tax
KPMG
Phone: +64 9 363 3458

mvsarelius@kpmg.co.nz

Darshana Elwela
National Tax Director
KPMG
Phone: +64 9 367 5940

delwela@kpmg.co.nz

Taxmail - Comment on topical tax issues from KPMG NZ Tax.