Bill to strengthen the economy passes first reading

The Government continues to introduce measures that will strengthen the economy and ensure New Zealand businesses and individuals have a more secure future, Revenue Minister Simon Watts says.

"The Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill, which passed its first reading today, proposes several measures aimed at delivering the Government's key promise to New Zealanders to improve economic conditions.

"The centrepiece of the Bill proposes a streamlined way to apply tax relief for future emergency events, including earthquakes and floods. In future, these will be activated by Order in Council rather than relying on primary legislation.

"This will mean a swifter government tax response to such emergency events and earlier certainty for affected taxpayers.

"A more rapid response means a more rapid recovery and we want to ensure the system is prepared before an emergency event occurs.

"The Government also wants to help young people secure their economic future. We are proposing to allow young people under 16 to enrol in KiwiSaver with the signature of just one guardian. At present they need the consent of all guardians and that can be difficult where parents are living apart.

"We have started to see signs of our economy moving back in the right direction, but it is not job done. The Bill proposes several other measures to strengthen the economy and ensure we're all better off."

Other proposed measures will:

• make it easier to transfer pension funds from selected countries including the UK to New Zealand schemes,
• ensure eligible businesses can access capital to grow by allowing borrowers to register retrospectively for the approved issuer levy in certain circumstances, and
• support the tech sector and start-ups by increasing the thresholds relating to exempt employee share schemes

"Every year the government passes legislation like this to set the tax rates for the next year, and we have included various changes to make the system simpler and help it play its past in boosting productivity," Mr Watts says.