The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill has passed its final stages in Parliament. Introduced in July 2008, the omnibus tax bill gives effect to a number of business tax reforms.

What are the main changes:

• The eagerly awaited payroll giving scheme for charitable donations, which will operate through the tax PAYE system, will come into being three months from the date the new legislation receives Royal assent, which probably means before Christmas. Under the scheme, people whose employers sign up for the scheme will receive the tax benefits of their donations each payday, without having to present donation receipts.

• Employer payments and allowances: The law has been clarified to ensure employer payments for relocation and overtime meal allowances are tax-free, thus removing long-standing uncertainty in the law and saving time and money for everyone involved.

• A change to the KiwiSaver law allows families of members who die to have quick access to funds in the dead member’s account. With effect from 1 July 2007, up to $15,000 from a dead member’s account can be paid out directly to nominated persons, without their having to await probate if the member left a will or letters of administration if the member died intestate.

For the full media release see the What’s New with NZPPA section on the NZPPA website, click here.