Source: New Zealand Government
Revenue Minister Simon Watts has introduced a new tax bill aimed at boosting New Zealand’s economy, helping businesses grow, and making it easier for skilled people to live and work here.
“This Government’s top priority is growing the economy so we can deliver more jobs, higher wages, and lower costs for New Zealanders,” Mr Watts says.
“One way to do that is by making New Zealand a place where talented people and investors want to stay and build their futures.”
“Currently, new migrants are taxed on estimated overseas income, even if they don’t actually receive it. The new law will change that, so they are only taxed on money they actually earn.
“This makes it fairer and more attractive for skilled migrants to move here, and helps keep talented New Zealanders from leaving.”
The bill also makes it easier for overseas visitors working remotely, sometimes known as digital nomads, to stay longer in New Zealand before being taxed, encouraging them to spend more in our economy while they’re here.
To help businesses attract and keep good staff, the Bill fixes tax timing issues with employee share schemes – a common way smaller businesses reward workers.
The bill also reduces unnecessary tax compliance costs. For example:
- Joint ventures: Current GST practices will be recognised instead of forcing businesses through costly changes.
- Residential solar power: People who export excess power back to the grid won’t face income tax, recognising that the compliance burden would outweigh any benefit and to encourage greater solar and battery uptake.
“These practical changes make the tax system simpler and more effective. They remove barriers that hold back investment and growth,” Mr Watts says.
“With this bill, we’re backing businesses, attracting investment, and creating the conditions for a stronger economy – one that delivers more opportunities, higher wages, and a lower cost of living for New Zealanders.”
