Amendment paper Bill enacted Released 02 December 2020 | Andrew Bayly

Taxation (Income Tax Rate and Other Amendments) Bill - Amendment paper No 002

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Contents

15B Section YA 1 amended (Definitions)

Explanatory note

No 2

House of Representatives

Supplementary Order Paper

Wednesday, 2 December 2020

Taxation (Income Tax Rate and Other Amendments) Bill

Proposed amendment

Andrew Bayly, in Committee, to move the following amendment:

New clauses 15B and 15C

After clause 15 (page 5, after line 21), insert:

15B Section YA 1 amended (Definitions)

In section YA 1, insert the following definition in its appropriate alphabetical order:

specified dollar range means the dollar ranges set out in the identified rows in the following tables:

(a)

row 5 (and the upper limit of the range in row 4) of schedule 1, part A, table 1:

(b)

row 5 (and the upper limit of the range in row 4) of schedule 1, part C, table 1:

(c)

row 5 (and the upper limit of the range in row 4) of schedule 1, part D, table 1

15C New sections YA 2B and YA 2C inserted

After section YA 2, insert:

YA 2B Indexation of specified dollar ranges

Review of specified dollar ranges

(1)

The Commissioner must, within 12 months of the return of the writ after a general election, review all specified dollar ranges to determine if they should be adjusted to reflect movement in the New Zealand Consumers Price Index in the period since the specified dollar ranges were last reviewed.

(2)

For the purpose of subsection (1), a movement in the New Zealand Consumers Price Index over the period is determined by comparing the following numbers:

(a)

the number that, when the period started, was the most recent quarterly index number of the New Zealand Consumers Price Index all groups:

(b)

the number that, when the period ended, was the most recent quarterly index number of the New Zealand Consumers Price Index all groups.

(3)

In the case of the first review under this section, the number to be used for the purposes of subsection (2)(a) is the quarterly index number of the New Zealand Consumers Price Index all groups for the quarter that ended 3 years prior to the quarter to be used for the purposes of subsection (2)(b).

Adjustment of specified dollar ranges by Order in Council

(4)

If the Commissioner concludes that any of the specified dollar ranges require adjustment, the relevant range or ranges must be adjusted by regulations made under section YA 2C.

Declining to adjust specified dollar range when required by review

(5)

Despite subsection (4), the Minister may decline to recommend that regulations be made under section YA 2C and, if so, the Minister must present to the House of Representatives a report that explains their reasons for declining to recommend the making of regulations to adjust the specified dollar ranges.

Defined in this Act: Commissioner, Minister, specified dollar range

YA 2C Regulations

When this section applies

(1)

This section applies for the purposes of section YA 2B.

Specifications

(2)

The Governor-General may, by Order in Council, made on the recommendation of the Minister, make regulations to adjust a specified dollar range by replacing the figures in that range.

Timing of Order in Council

(3)

An Order in Council made under this section must be made no later than 1 December in any year and must apply from 1 April following that date.

Explanatory note

This Supplementary Order Paper amends the Taxation (Income Tax Rate and Other Amendments) Bill to inflation-adjust the new tax bracket each three years.

Taxation (Income Tax Rate and Other Amendments) Bill - Amendment paper No 002