This Part amends the KiwiSaver Act 2006.

In section 4(1), definition of employer contribution, replace paragraph (c) with:

In section 4(1), insert, in appropriate alphabetical order:

In section 4(1), definition of salary or wages, paragraph (a)(vi), replace “section CE 2(2) or (4) of the Income Tax Act 2007 under a share purchase agreement” with “section CE 2 of the Income Tax Act 2007 under an employee share scheme”.

Repeal section 4(3).

Replace section 17(5) with:

In section 18(2), replace “3 months” with “92 days”.

Replace section 22(1)(a) with:

Replace section 23 with:

Replace section 34(2)(a) with:

Replace section 34(3) and (4) with:

Replace section 38(2)(d) with:

Replace section 38(2)(d) with:

In section 39, words before the paragraphs, delete “to whom the opt-in notice relates”.

Replace section 39(b) with:

In section 48(1)(d), replace “3 months” with “62 days”.

In section 51(1B), replace “(bb)” with “(ba)”.

In section 51(4)(a), replace “3 months” with “the 62nd day”.

In section 51(4)(b), replace “3 months” with “62 days”.

In section 56(4), replace “35 days” with “10 working days”.

In section 57(5), replace “3 months instead of 35 days” with “62 days instead of 10 working days”.

After section 59B(2)(a), insert:

In section 59B(2)(b), words before the subparagraphs, delete “(a),”.

In section 59B(2)(b)(i) and (ii), replace “3 months” with “the 92nd day” in each place.

Replace section 59C(1) with:

In section 59C(2)(a), delete “(a) and”.

In section 59C(2)(b), delete “the requirements of section 6 or”.

In section 59D(1), after the words before the paragraphs, insert:

Replace section 59D(1)(a) with:

After section 63A, insert:

Replace section 64(2) and (3) with:

In section 64(4), replace “3 months” with “92 days”.

Replace section 69 with:

Replace the heading to section 71 with “Time at which unexplained remittances of deductions deemed to be received”.

Replace the heading to section 73 with “Certain unremitted deductions and employer contributions entered in and paid out of holding account”.

Replace section 73(1) and (2) with:

In section 73(3), replace “sections 75 to 77” with “sections 75 and 77”.

In section 73(5), replace “sections 70 and 71” with “sections 70, 71, 95C, and 95D”.

Repeal section 73(6).

In section 74(3), replace “sections 75 to 77” with “sections 75 and 77”.

In the heading to section 75, replace “3 months” with “62 days”.

In section 75(1), words before the paragraphs, replace “3-month” with “62-day”.

In section 75(3), replace “3 months” with “62-day period”.

Repeal section 76.

Replace section 78 with:

Replace the heading to section 81 with “Refund by provider of amounts paid in excess of required amount of contribution or if member opts out”.

Replace section 81(1) with:

In section 81(2), replace “the amount” with “any amount”.

Replace section 85 with:

In section 88, replace “3 months” with “92 days”.

In section 93(5), delete “paid”.

After section 95, insert:

Replace the heading to section 96 with “What Commissioner must do with contributions received, or treated as received, under this subpart”.

Repeal section 98.

Replace the heading to section 98A with “Short payments of employer contributions”.

In section 98A, words before the paragraphs, delete “the Income Tax Act 2007 and”.

In section 98A(a), replace “treated as received by the Commissioner under section 98(2) of this Act” with “received by the Commissioner”.

Repeal section 99.

After section 101(1), insert:

After section 101, insert:

After section 101C(c), insert:

Replace section 103(2)(c) with:

In section 104(2), replace “3 months” with “92 days”.

In section 104(3)(a), replace “3 months” with “92 days”.

Replace section 105(2) with:

In section 107(a), replace “apply” with “apply, if the application was required by the Commissioner to contain the information described in section 103(2)(c)”.

Subsection (1) applies in relation to an application for a savings suspension made on or after 1 April 2020.

In the heading to section 108, replace “3-month” with “92-day”.

In section 108(2), replace “3 months” with “92 days”.

In section 112B(3), replace “3 months” with “92 days” in each place.

After section 221, insert:

In section 226(1B), replace “3-month” with “62-day”.

In section 226(1C), replace “3 months” with “62 days”.

After section 228(1)(m), insert:

After section 228(1), insert:

After section 242, insert:

In schedule 1, replace clause 8(2) with:

In schedule 1, after clause 12, insert:

In schedule 1, clause 13,—

This Part amends the Student Loan Scheme Act 2011.

In section 4(1), definition of loan balance, repeal paragraph (a)(iva).

In section 4(1), repeal the definition of underestimation penalty.

Repeal section 5(1)(i).

Replace section 25(2) with:

In section 26, replace “section 25(1)” with “section 25”.

In section 26(b), after “Schedule 1,”, insert “or section 25(3),”.

In section 27, replace “section 25(1)” with “section 25”.

After section 62, insert:

In section 72(a), replace “$1,500” with “$500” in each place.

After section 74(2)(c), insert:

In the heading to section 106, replace “repayment holiday” with “temporary repayment suspension”.

In section 106, replace “repayment holiday” with “temporary repayment suspension”.

In the cross-heading above section 107, replace “Repayment holiday from” with “Temporary repayment suspension of”.

In the heading to section 107, replace “repayment holidays” with “temporary repayment suspensions”.

In section 107(1), replace “repayment holiday” with “temporary repayment suspension”.

In the heading to section 107B, replace “repayment holiday” with “temporary repayment suspension”.

In section 107B(1), (2), (3)(c)(ii)(B), and (3)(d), replace “repayment holiday” with “temporary repayment suspension” in each place.

In section 107B(3)(a), (b), and (c), replace “repayment holidays” with “temporary repayment suspensions” in each place.

In the heading to section 108, replace “repayment holiday” with “temporary repayment suspension”.

In section 108(1), (2), and (3), replace “repayment holiday” with “temporary repayment suspension” in each place.

In the heading to section 108A, replace “repayment holidays” with “temporary repayment suspensions”.

In section 108A(1), replace “repayment holidays” with “temporary repayment suspensions”.

In section 108A(1), (2), and (3), replace “repayment holiday” with “temporary repayment suspension” in each place.

In section 110(1)(a), replace “repayment holiday” with “temporary repayment suspension”.

Replace section 114(3) with:

In section 115(1)(c), replace “repayment holiday” with “temporary repayment suspension”.

In section 144(1)(a) and (c), replace “less than $20” with “not more than $20”.

In section 144(1)(e), replace “$20 or less” with “not more than $20”.

In section 144(2)(a), replace “$20 or more” with “more than $20”.

Repeal section 146A(3)(a)(ii).

Repeal section 161A and the cross-heading above section 161A.

In section 176(a), replace “section 25(1)” with “section 25”.

In the heading to section 182A, replace “repayment holiday” with “temporary repayment suspension”.

In section 182A, replace “repayment holiday” with “temporary repayment suspension”.

In section 189(1), replace “$20 or more” with “more than $20”.

In section 191(1) and (3A), before “loan balance”, insert “consolidated”.

In section 191(1), replace “of the month in which the pay period falls” with “of the pay period”.

Replace section 191(2) with:

In the heading to section 194, replace “salary or wage” with “certain”.

Replace section 194(1) with:

In section 194(2), after “penalties”, insert “(unless the borrower’s consolidated loan balance consists only of 1 or more of those things)”.

Replace section 195(3) and (3A) with:

In section 197(2), replace “less than $20” with “not more than $20”.

In section 220(2), table, after the item relating to the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016, insert:

In Schedule 1, clause 11(1), after “section 25(1)”, insert “or under section 25(3)”.

In Schedule 6, replace the heading to clause 2 with “Student Loan Scheme Act 1992 applies to tax years prior to 1 April 2012 in limited circumstances”.

In Schedule 6, clause 2(1), replace “continues in full effect to the extent necessary for the proper administration and completion of all matters under that Act” with “continues in effect only to the extent necessary for the proper administration and completion of the matters referred to in clauses 24 to 28”.

In Schedule 6, clause 2(2) and (3), replace “a matter under the Student Loan Scheme Act 1992” with “a matter referred to in subclause (1)”.

In Schedule 6, after Part 4, insert the Part 5 set out in schedule 1 of this Act.

Sections 82 to 190 amend the Income Tax Act 2007.

In section BB 2(5), replace “another ancillary tax” with “income tax or ancillary tax”.

In section BB 2, list of defined terms, insert “income tax”.

After section BC 7(4), insert:

Subsection (1) applies for the 2020–21 and later income years.

In section CB 16A(1), replace “if the land has been used predominantly, for most of the time the person owns the land, for a dwelling” with “if, for most of the period starting with the relevant date described in section CB 6A(1) to (4B) and ending with the bright-line date for the residential land, the land has been used predominantly for a dwelling”.

Repeal section CC 1(2C).

In section CC 1B(1), after “use land”, insert “or as consideration for the grant, renewal, extension, or transfer of the land right”.

Subsection (1) applies to an amount derived by a person on or after 1 April 2013, except an amount for which the person relies on a tax position taken by the person in a return of income filed with the Commissioner, or on a binding ruling issued by the Commissioner,—

In section CC 1B(1)(a), words before the subparagraphs, replace “is” with “is— ”.

Replace section CC 1B(1)(b)(ii) with:

After section CC 1B(5), insert:

Subsection (2) applies to an amount derived by a person on or after 1 April 2015, except an amount for which the person relies on a tax position taken by the person, or on a binding ruling issued by the Commissioner,—

In the heading to section CD 4, replace “Transfers of value” with “Transfers of company value”.

In the heading to section CD 4(1), replace “Transfers of value” with “Transfers of company value”.

In section CD 4(1), replace “transfer of value” with “transfer of company value”.

In section CD 4, list of defined terms, replace “transfer of value” with “transfer of company value”.

In the heading to section CD 5, replace “transfer of value” with “transfer of company value”.

In section CD 5(1), replace “transfer of value” with “transfer of company value”.

In section CD 5(3), replace “transfer of value” with “transfer of company value”.

In section CD 5, list of defined terms, replace “transfer of value” with “transfer of company value”.

In section CD 6(1), replace “transfer of value” with “transfer of company value”.

In section CD 6(3), replace “transfer of value” with “transfer of company value”.

In section CD 6(4), replace “transfer of value” with “transfer of company value”.

In section CD 6, list of defined terms, replace “transfer of value” with “transfer of company value”.

In section CD 27(1)(a), replace “transfer of value” with “transfer of company value”.

In section CD 27(2),—

In section CD 27(3),—

In section CD 27(4), replace “transfer of value” with “transfer of company value”.

In section CD 27, list of defined terms, replace “transfer of value” with “transfer of company value”.

In section CD 29C, replace “transfer of value” with “transfer of company value” in the first place it appears.

In section CD 29C, list of defined terms, replace “transfer of value” with “transfer of company value”.

In the heading to section CD 38, replace “transfers of value” with “transfers of company value”.

In section CD 38(1), replace “transfer of value” with “transfer of company value”.

In section CD 38, list of defined terms, replace “transfer of value” with “transfer of company value”.

After section CE 7C, insert:

After section CW 26C(3), insert:

In section CW 26C(7)(a), replace “disposed of” with “disposed of other than as part of a takeover or similar share reorganisation,”.

In section CW 26C(7)(b), replace “disposed of” with “disposed of other than as part of a takeover or similar share reorganisation,”.

Replace section CW 26C(8) with:

In section CW 26C(9), replace “subsection (8)” with “subsections (8) and (8B)”.

After section CW 26D, insert:

Replace the heading to section CW 38(1) with “Exempt income: sinking funds”.

Replace the heading to section CW 38(2) with “Exempt income: other income”.

Replace the heading to section CW 38B(1) with “Exempt income: sinking funds”.

Replace the heading to section CW 38B(2) with “Exempt income: other income”.

Replace the heading to section CW 39(1) with “Exempt income: sinking funds”.

Replace the heading to section CW 39(2) with “Exempt income: other income”.

In section CW 56(1), replace “air transport from New Zealand is exempt income” with “air transport from New Zealand, or from air transport to New Zealand, is exempt income”.

In section CW 56(3), definition of air transport from New Zealand, replace paragraph (b) with:

In section CW 56(3), insert, in appropriate alphabetical order:

In section CW 56, list of defined terms, insert “air transport to New Zealand”.

Subsections (1), (2), and (3) apply for the 2008–09 and later income years.

In section CX 17(4)(a), replace “Transfers of value” with “Transfers of company value”.

In section CX 22, replace “transfer of value” with “transfer of company value”.

In section CX 22, list of defined terms, replace “transfer of value” with “transfer of company value”.

In section CX 56(1), replace “when an investor in a multi-rate PIE” with “when an investor in a multi-rate PIE, other than an investor who is a natural person,”.

After section CX 56(1B), insert:

After section CX 56(2)(c), insert:

In section CX 56, in the list of defined terms, insert “natural person” and “PIE schedular income”.

Subsections (1) and (3) apply for the 2020–21 and later income years.

In section CZ 35, list of defined terms,—

Replace the heading to section EE 47(2B) with “Event timing for person’s income becoming tax exempt”.

In section EL 3,—

In section EL 4(2), replace “the person’s residential income for the income year.” with “the person’s residential income for the income year. An amount identified as a person’s residential income may be counted only once in making an allocation under this subpart.”

In section EL 5(2), replace “see section EL 8” with “see subsections (5) and (6)”.

After section EL 5(4), insert:

In section EL 7(2),—

After section EL 7(4), insert:

Repeal section EL 8.

In section EL 15(1), delete “carried forward”.

Replace section EL 16(2)(b) with:

In section EL 18(a), replace “residential income for the income year” with “residential income for the income year from property held by the entity”.

In section EY 30(5BA)(c), replace “consisting of the last 4 quarters preceding the year” with “that is the basis for the calculation, under the formula referred to in paragraph (b), of the increase in the sum assured”.

In section EY 30, list of defined terms, delete “quarter”.

Subsection (1) applies for a person for the income year that includes 1 July 2010 and later income years, except for an income year for which the person notifies the Commissioner on or after 26 June 2019 that the person chooses to rely on a tax position that is inconsistent with the amendment made by subsection (1).

In section FB 3A(1), replace “section CB 6A (Disposal within 5 years: bright-line test for residential land)” with “sections CB 6A and CB 16A (which relate to the bright-line test for residential land),”.

In section FB 3A(3), replace “section CB 6A(1) to (4)” with “section CB 6A(1) to (4B)”.

In section FC 1(1)(d), replace “transfer of value” with “transfer of company value”.

In section FC 1, list of defined terms, replace “transfer of value” with “transfer of company value”.

Replace section FC 2(4) with:

In section FC 2, list of defined terms, insert “settlement”.

In section FE 5(1C)(c), replace “interest:” with “interest; and”.

In section FE 6(3)(ac)(i), after “for the excess debt entity”, insert “or that is related-party debt for which the lender is not a New Zealand resident and does not carry on a business through a fixed establishment in New Zealand”.

In section FE 6, list of defined terms, insert “fixed establishment”, “New Zealand resident”, and “related-party debt”.

Subsection (1) applies for income years beginning on or after 1 July 2018.

In section FE 16B(1)(b), words before subparagraph (i), replace “a shareholder that is a member of the group” with “a shareholder”.

In section FE 16B(1)(b)(i), replace “shareholding of each shareholder” with “voting interest of each shareholder”.

In section FE 16B(1)(c)(i), replace “shareholding of each shareholder” with “voting interest of each shareholder”.

After section FE 16B(2), insert:

In section FE 16B, list of defined terms, insert “wholly-owned group”.

Subsections (1) to (4) apply for income years beginning on or after 1 July 2018.

After section FH 1(4)(c), insert:

Subsection (1) applies for income years beginning on or after 1 July 2018.

In section FH 5(2)(b), replace “as the payee.” with “as the payee; and”.

After section FH 5(2)(b), insert:

Subsections (1) and (2) apply for income years beginning on or after 1 July 2018.

After section FH 5, insert:

Subsection (1) applies for income years beginning on or after 1 July 2018.

In section FH 7(1)(d), after “taxation law of”, insert “New Zealand and of”.

Subsection (1) applies for income years beginning on or after 1 July 2018.

In section FH 14(2), after “subsection (5)(a)(i)”, insert “and sections FH 3 to FH 11 do not apply to expenditure incurred, or income derived, by the hybrid entity from the deemed sale”.

In section FH 14(5)(a)(i), after “of the hybrid entity”, insert “, as a hybrid entity,”.

Subsection (1) applies for income years beginning on or after 1 July 2018.

In section FM 8(3)(c), replace “Transfers of value” with “Transfers of company value”.

Replace section GB 27(4), other than the heading, with:

In section GB 27(5), replace “subsection (4)(c)” with “subsection (4)(b)(iii)”.

In section GB 27, list of defined terms, insert “Commissioner”.

Subsections (1) and (2) apply for the 2008–09 and later income years. However, subsections (1) and (2) do not apply to a person in relation to a tax position taken by the person—

After section GB 29(1), insert:

Subsection (1) applies for the 2008–09 and later income years.

In section GC 10(1)(b)(ii), replace “arrangement:” with “arrangement; and”.

In section GC 10(1)(c), replace “amount:” with “amount; and”.

In section GC 16(5), replace “senior unsecured debt” with “senior debt”.

Subsection (1) applies for a person and a financial arrangement and income years beginning on or after 1 July 2018.

In section HA 13, replace “transfer of value” with “transfer of company value”.

In section HA 13, list of defined terms, replace “transfer of value” with “transfer of company value”.

Replace section HC 2(2), other than the heading, with:

After section HC 2(2), insert:

In section HC 2, list of defined terms, insert “New Zealand resident”, “non-resident”, and “resident in New Zealand”.

Subsections (1) and (2) apply for income years beginning after the date on which this Act receives the Royal assent.

Replace section HC 4(1) with:

Replace section HC 7(3), other than the heading, with:

In section HC 7, list of defined terms, insert “taxable distribution”.

Subsection (1) applies for the 2008–09 and later income years.

Replace section HC 10(1)(ab) with:

In section HC 10(3), delete “and (ab)”.

Subsection (1) applies for a trust and an election under section HC 33(1) made after the date on which this Act receives the Royal assent.

After section HC 14(2), insert:

In section HC 14, list of defined terms, insert “interest” and “prescribed rate of interest”.

After section HC 15(5B), insert:

In section HC 15(6), replace “providing” with “providing financial assistance or”.

In section HC 15, list of defined terms, insert “financial assistance” and “income”.

Before section HC 16(2)(a), insert:

In section HC 16(2)(a), replace “first” with “second”.

In section HC 16(2)(b), replace “second” with “third”.

In section HC 16(2)(c), replace “third” with “fourth”.

In section HC 16(2)(d), replace “fourth” with “fifth”.

In section HC 16(5), words before the paragraphs, replace “not being a taxable distribution” with “not being beneficiary income or a taxable distribution”.

Repeal section HC 16(5)(b).

Subsections (1) to (7) apply for income years beginning after the date on which this Act receives the Royal assent.

In section HC 25(2)(c)(ii), after “year)”, insert “or the last surviving settlor was resident in New Zealand when that settlor ceased to exist”.

In section HC 26(1), words before the paragraphs, after “derives in an income year”, insert “, and is included in trustee income for the income year,”.

In section HC 26(1)(a), after “transitional resident”, insert “or, if no settlor exists in the income year, the last surviving settlor was a non-resident when that settlor ceased to exist”.

After section HC 26(1)(a), insert:

In section HC 26(1)(d)(iv), replace “year.” with “year; and”.

After section HC 26(1)(d), insert:

In section HC 26, list of defined terms, insert “beneficiary income”, “minor”, “non-resident”, and “trustee income”.

Replace section HC 27(4), other than the heading, with:

In section HC 27(6),—

In section HC 27, list of defined terms, insert “prescribed rate of interest”.

Replace section HC 28(3), other than the heading, with:

Replace section HC 28(4)(c) with:

In section HC 28, list of defined terms, insert “accounting period” and “controlled foreign company”.

After section HC 31, insert:

In section HC 33(1B), words before the paragraphs, delete “ignoring the requirement in subsection (4),”.

Replace section HC 33(1B)(b) and (c) with:

After section HC 33(1B), insert:

Replace section HC 33(2)(a) with:

Replace section HC 33(3)(a) and (b) with:

After section HC 33(3), insert:

In section HC 33(4), replace “The person must notify the Commissioner of an election under subsection (1)” with “If the trustee of a trust is required to file a return of income for an income year, a person making an election under subsection (1) must notify the Commissioner of the election and provide to the Commissioner the information required by section 113F of the Tax Administration Act 1994”.

After section HC 33(4), insert:

In section HC 33, list of defined terms, insert “foreign trust”, “income”, “non-complying trust”, and “tax position”.

In section HC 36(5), repeal the definition of financial assistance.

In section HM 3(1)(b)(ii), replace “scheme.” with “scheme; and”.

Replace section HM 6(2)(a)(i) with:

After section HM 6(2)(c), insert:

In section HM 6, in the list of defined terms, insert “PIE schedular income” and “schedular income tax liability”.

Subsection (1) applies for the 2020–21 and later income years.

After section HM 36, insert: