KPMG in New Zealand reports that on 3 October 2012, New Zealand’s government announced that the proposals to tax employees’ salary trade-offs will be narrowed. The rules now target Auckland and Wellington central business district (CBD) car parks and vouchers for goods and services issued by charities to employees, rather than all explicit and implicit salary sacrifice benefits as originally proposed. For international assignees working in New Zealand, the proposals may have an impact on salary packaging if the additional tax costs on car park benefits are passed on by employers.