Taxation (Annual Rates and Budget Measures) Act 2011

Reprint as at 10 December 2015

Coat of Arms of New Zealand

Taxation (Annual Rates and Budget Measures) Act 2011

Public Act
 
2011 No 23
Date of assent
 
24 May 2011
Commencement
 
see section 2
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Inland Revenue Department.

The Parliament of New Zealand enacts as follows:

 
1 Title

This Act is the Taxation (Annual Rates and Budget Measures) Act 2011.

2 Commencement

(1)

This Act comes into force on the day on which it receives the Royal assent, except as provided in this section.

(2)

Section 5(1) comes into force on the 1 April that is the day of application required by section MF 7(3) of the Income Tax Act 2007 for the first Order in Council under section MF 7(1)(a) and (2).

(3)

Sections 5(2) and 14B(1) come into force on the 1 April that is the day of application required by section MF 7(3) for the second Order in Council under section MF 7(1)(a) and (2).

(4)

Sections 5(3) and 14B(2) come into force on the 1 April that is the day of application required by section MF 7(3) for the third Order in Council under section MF 7(1)(a) and (2).

(5)

Sections 5(4) and 14B(3) come into force on the 1 April that is the day of application required by section MF 7(3) for the fourth Order in Council under section MF 7(1)(a) and (2).

(6)

Section 7 comes into force on 1 July 2011.

(7)

Sections 8, 9, 10, 11, 12, 13, and 14 come into force on 1 April 2012.

Section 2(3): amended, on 10 December 2015, by section 7(1) of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

Section 2(4): amended, on 10 December 2015, by section 7(2) of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

Section 2(5): amended, on 10 December 2015, by section 7(3) of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

Part 1 Annual rates of income tax

3 Annual rates of income tax for 2011–12 tax year

Income tax imposed by section BB 1 of the Income Tax Act 2007 must, for the 2011–12 tax year, be paid at the basic rates specified in schedule 1 of that Act.

Part 2 Working for Families and KiwiSaver

Amendments to Income Tax Act 2007

4 Income Tax Act 2007

Sections 5 to 14B amend the Income Tax Act 2007.

Section 4: amended, on 10 December 2015, by section 8 of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

5 Calculation of family credit abatement

(1)

In section MD 13(3)(a),—

(a)

in subparagraph (i), “$36,827, 20 cents” is replaced by “$36,350, 21.25 cents”:

(b)

in subparagraph (ii), “$36,827, 20 cents” is replaced by “$36,350, 21.25 cents”.

(2)

In section MD 13(3)(a),—

(a)

in subparagraph (i), replace “$36,350, 22.5 cents” with “$35,900, 23.75 cents”:

(b)

in subparagraph (ii), replace “$36,350, 22.5 cents” with “$35,900, 23.75 cents”.

(3)

In section MD 13(3)(a),—

(a)

in subparagraph (i), replace “$35,900, 23.75 cents” with “$35,450, 25 cents”:

(b)

in subparagraph (ii), replace “$35,900, 23.75 cents” with “$35,450, 25 cents”.

(4)

In section MD 13(3)(a),—

(a)

in subparagraph (i), replace “$35,450, 25 cents” with “$35,000, 25 cents”:

(b)

in subparagraph (ii), replace “$35,450, 25 cents” with “$35,000, 25 cents”.

Section 5(2): replaced, on 10 December 2015, by section 9 of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

Section 5(3): replaced, on 10 December 2015, by section 9 of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

Section 5(4): replaced, on 10 December 2015, by section 9 of the Taxation (Support for Children in Hardship) Act 2015 (2015 No 118).

6 Orders in Council

(1)

In section MF 7(1)(a), the words before the subparagraphs are replaced by “increase the amounts in section MD 3(4)(a)(i) and (b)(i) and (ii) (Calculation of family tax credit) by amounts that— ”.

(2)

After section MF 7(1)(a), the following is inserted:

(ab)

increase the amount in—

(i)

section MD 3(4)(a)(ii) to equal the corresponding amount in section MD 3(4)(a)(i), if the amount in section MD 3(4)(a)(i) would otherwise be the greater:

(ii)

section MD 3(4)(b)(iii) to equal the corresponding amount in section MD 3(4)(b)(ii), if the amount in section MD 3(4)(b)(ii) would otherwise be the greater:

(3)

After section MF 7(2B), the following is inserted:

Order in Council under subsection (1)(ab)

(2C)

An Order in Council must be made under subsection (1)(ab) if an Order in Council under subsection (1)(a) would otherwise result in—

(a)

the amount in section MD 3(4)(a)(i) exceeding the amount in section MD 3(4)(a)(ii):

(b)

the amount in section MD 3(4)(b)(ii) exceeding the amount in section MD 3(4)(b)(iii).

7 Amount of tax credit

(1)

In section MK 4(2),—

(a)

“a person’s” is replaced by “half of a person’s”; and

(b)

“$1042.86” is replaced by “$521.43”.

(2)

Section MK 4(3)(a) and (b) are replaced by the following:

(a)

equal to half of their total member credit contributions for the year, if that amount is equal to or less than the part-year maximum amount calculated under subsection (4); or

(b)

equal to the part-year maximum amount calculated under subsection (4), if half of their total member credit contributions for the year is greater than the part-year maximum amount calculated under subsection (4).

(3)

In section MK 4(4), in the formula, “$1042.86” is replaced by “$521.43”.

(4)

Subsections (1), (2), and (3) apply for calculating a tax credit for the year starting on 1 July 2011 and later years.

8 Salary or wages

(1)

In section RD 5(1)(c)(vi), “Act; and” is replaced by “Act.”

(2)

Section RD 5(1)(d) is repealed.

9 Employer’s superannuation cash contributions

(1)

Section RD 65(4) is repealed.

(2)

Section RD 65(13) is repealed.

(3)

In section RD 65, in the list of defined terms, “complying fund calculation period”, “complying fund rules”, “complying superannuation fund”, “compulsory employer contribution”, “KiwiSaver calculation period”, “KiwiSaver contribution”, “KiwiSaver scheme”, and “salary or wages” are omitted.

10 Section RD 66 repealed

Section RD 66 is repealed.

11 Section RD 67 replaced

Section RD 67 is replaced by the following:

RD 67 Calculating amounts of tax for employer’s superannuation cash contributions

The amount of tax for an employer’s superannuation cash contribution is the amount determined under schedule 1, part D, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits).

Defined in this Act: amount, amount of tax, employer, employer’s superannuation cash contribution

12 Section RD 69 repealed

Section RD 69 is repealed.

13 Definitions

(1)

This section amends section YA 1.

(2)

The definition of complying fund rules is replaced by the following:

complying fund rules means, for a superannuation fund and an employee’s superannuation accumulation, rules that—

(a)

meet all the requirements set out in schedule 28 (Requirements for complying fund rules); and

(b)

do not detract from those requirements

(3)

In the definition of salary or wages, paragraph (b) is replaced by the following:

(b)

is further defined in schedule 28, clause 7 (Requirements for complying fund rules) for the purposes of that schedule

14 Schedule 1– –Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

In schedule 1, part D,—

(a)

in the heading to clause 1 “(a)” is omitted; and

(b)

in clause 1, “If section RD 67(a) applies” is replaced by “For the purposes of section RD 67”; and

(c)

in table 1, in the instructions to use that table, “the amount of salary or wages under section RD 69(1)” is replaced by “the ESCT rate threshold amount”; and

(d)

clause 2 is repealed.

14B Schedule 31 amended

(1)

In Schedule 31, replace the first and second rows after the heading row with:

Amount does not exceed $35,900$35,900
Amount exceeds $35,900 but does not exceed $36,500$36,500
Amount exceeds $36,500 but does not exceed $38,000$38,000

(2)

In Schedule 31, replace the first and second rows after the heading row with:

Amount does not exceed $35,450$35,450
Amount exceeds $35,450 but does not exceed $36,500$36,500

(3)

In Schedule 31, replace the first and second rows after the heading row with:

Amount does not exceed $35,000$35,000
Amount exceeds $35,000 but does not exceed $36,500$36,500

Amendment to KiwiSaver Act 2006

15 New section 237 of KiwiSaver Act 2006

After section 236 of the KiwiSaver Act 2006, the following is added:

237 Protection from non-compliance: Taxation (Annual Rates and Budget Measures) Act 2011

If, as a result of amendments in sections 7 to 14 of the Taxation (Annual Rates and Budget Measures) Act 2011, there is non-compliance with an enactment related to securities, the non-compliance is ignored, if it starts before 31 July 2011 and does not continue on or after 31 July 2011, or if it relates to—

(a)

a prospectus that is registered under the Securities Act 1978 on or before 27 May 2011:

(b)

an investment statement under the Securities Act 1978 that is dated on or before 27 May 2011.

Reprints notes
1 General

This is a reprint of the Taxation (Annual Rates and Budget Measures) Act 2011 that incorporates all the amendments to that Act as at the date of the last amendment to it.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.

4 Amendments incorporated in this reprint

Taxation (Support for Children in Hardship) Act 2015 (2015 No 118): sections 7–10