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Budget 2016 invests $503 million of new operating funding over the next four years and $354 million of new capital funding for Inland Revenue’s new tax administration system, Revenue Minister Michael Woodhouse says.

“It is important that our tax system keeps pace with changes in New Zealanders’ expectations and changing business models,” Mr Woodhouse says.

Revenue Minister Michael Woodhouse says the recent signing of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports will help ensure large multinationals pay their fair share of tax by providing for increased sharing of information between revenue authorities.

“Some large multinationals often have intricate financial arrangements in place to minimise or eliminate tax obligations on their earnings, known as base erosion and profit shifting (BEPS),” Mr Woodhouse says.

An officials’ issues paper seeking feedback on the taxation of employee share schemes was today release for consultation, Revenue Minister Michael Woodhouse says.

Employee share schemes are arrangements that allow employers to provide shares and share options to their employees as part of their remuneration.

“Employee share schemes are becoming a much more popular form of remuneration, so it’s important the tax treatment of share schemes is fair,” Mr Woodhouse says.

Tertiary Education, Skills and Employment Minister Steven Joyce and Revenue Minister Michael Woodhouse have welcomed the passing of a Bill which will help Inland Revenue contact more student loan borrowers in Australia.

The Taxation (Residential Land Withholding Tax, GST on Online Services and Student Loans) Bill includes an information sharing agreement with the Australian Tax Office which will ensure that Kiwis fulfil their student loan obligations.

Cross-border purchases by New Zealand residents of services and other intangibles such as music bought through offshore providers will be subject to GST from 1 October 2016, following the passing of the Taxation (Residential Land Withholding Tax, GST on Online Services and Student Loans) Bill in Parliament today, Revenue Minister Michael Woodhouse says.

“Collecting GST from the growing volume of online sales across borders has been an issue of growing concern for some time, so the passing of this legislation marks a very important first step,” Mr Woodhouse says.

The Government remains committed to tackling tax evasion and avoidance by ensuring that our tax rules are open and transparent, Revenue Minister Michael Woodhouse says.

“New Zealand has an extensive network of tax treaties and information exchange agreements, which are at the heart of a transparent tax system,” Mr Woodhouse says.

“As of today New Zealand has signed such agreements with around 100 countries, including Latin American countries. This helps New Zealand and other tax authorities detect tax avoidance and evasion.

A wide-ranging tax Bill introduced today proposes technical changes to improve, strengthen and update our tax rules so they continue to work well for taxpayers, says Revenue Minister Michael Woodhouse.

“The Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Bill continues the Government’s work in making sure our tax system remains fit for purpose,” Mr Woodhouse says.

Immigration Minister Michael Woodhouse welcomes a new Global Impact Visa (GIVs) designed to bring innovative, global entrepreneurs to New Zealand.

“Last year the Government committed to considering a new Global Impact Visa to cater for high-impact entrepreneurs, investors and start-up teams to launch global ventures from New Zealand,” Mr Woodhouse says.

Minister of Immigration Michael Woodhouse welcomes a package of measures designed to make it easier for Chinese travellers to visit New Zealand.

The package includes the introduction of eVisas for Chinese nationals applying online and a Chinese version of the RealMe logon service, meaning there is now a complete online Chinese language application process, from registration to approval.

Later this year applicants will also be able to pay for online visa applications using China UnionPay debit and credit cards.

Workplace Relations and Safety Minister Michael Woodhouse welcomes an independent review of WorkSafe New Zealand that found the agency is performing well.

“Overall the Review found that WorkSafe is performing well and is on track to becoming a high performing state sector organisation,” Mr Woodhouse says.

“Stakeholders recognised WorkSafe’s aim to be a fair, consistent and proportionate regulator and were positive about WorkSafe’s engagement.

An SME-friendly tax package announced by the Prime Minister today will reduce compliance costs and make tax simpler for small businesses, Finance Minister Bill English and Revenue Minister Michael Woodhouse say.

“The package will make paying tax easier and more certain, reduce the burden of interest and penalties, and help small businesses tailor payments to their circumstances,” Mr English says.

“We want the tax system to fit in with how businesses operate, not the other way around.”

Key measures in the proposal are that:

Employers will now have to make lower-skilled employment opportunities available to New Zealanders before supporting a work visa to fill the vacancy, says Social Development Minister Anne Tolley and Immigration Minister Michael Woodhouse.

Changes came into force this week which mean that employers considering hiring a migrant for a lower-skilled role will now be required to engage with Work and Income at the beginning of the process to ensure there is no New Zealander available to do the job first.

Immigration Minister Michael Woodhouse welcomes new figures showing the number of overstayers in New Zealand is the lowest this century.

Latest estimates puts the number of overstayers at 10,848 – a considerable decrease of more than 1,300 on the previous estimate of 12,162 in October 2014. The estimated rate of overstaying (the number of overstayers compared with the number of temporary arrivals) is very small by international standards at around 3.5 in 10,000 (0.035%).

Cabinet today agreed to appoint highly regarded tax expert John Shewan to conduct an independent review of disclosure rules covering foreign trusts registered in New Zealand, Ministers Bill English and Michael Woodhouse say.

“Ministers decided that in light of the ‘Panama Papers’ being released last week, it’s worth looking at whether the disclosure rules are fit for purpose and whether there are practical improvements we can make,” Mr English says.

Revenue Minister Michael Woodhouse says New Zealand has a very sound tax system with world-class tax rules.

“We tax people who live, work and do business here. We don’t tax foreign income earned by foreigners,” says Mr Woodhouse.

“The same principles apply to trusts, and have done since 1988.

“It is ridiculous to suggest that New Zealand is a tax haven, as tax havens thrive on secrecy.

Tertiary Education, Skills and Employment Minister Steven Joyce and Revenue Minister Michael Woodhouse have welcomed a further boost in repayments from overseas-based student loan borrowers.

Over the first two months of this year there was a 31 per cent increase in repayments by overseas based borrowers over the same period in 2015.  In January and February this year $29.7 million was received from overseas-based borrowers, compared with $22.7 million in January and February last year.

The journey towards better health and safety practices in the workplace starts tomorrow with the new Health and Safety at Work Act coming into force, says Workplace Relations and Safety Minister Michael Woodhouse.

“This is the first major reform of workplace health and safety in more than 20 years and strikes the balance between ensuring workplaces are safe without imposing unnecessary red tape on business,” says Mr Woodhouse.

Immigration Minister Michael Woodhouse will today travel to Indonesia to attend the sixth Bali Process Ministerial Conference on People Smuggling, Trafficking in Persons and Related Transnational Crime.

The Conference brings together 43 countries to find practical measures to deter and disrupt the irregular movement of people.

“The Bali Process is an opportunity for New Zealand to confirm our support and commitment to tackling the problem of people smuggling and human trafficking,” Mr Woodhouse says.

Today’s launch of the Forest Industry Safety Council (FISC) Charter is an important milestone for improved health and safety outcomes and operational excellence in the forestry industry, says Workplace Relations and Safety Minister Michael Woodhouse.

The Charter publicly commits the industry to a mission of ‘Together Towards Zero’ as the driver for achieving safe outcomes for all forestry industry workers.

A Bill which will eliminate zero-hour contracts, extend paid parental leave (PPL) and help stamp out worker exploitation passed its third reading today, announced Workplace Relations and Safety Minister Michael Woodhouse.

“The passing of this Bill delivers on the Government’s commitment to improve New Zealand’s employment law framework to encourage fair and productive workplaces without imposing unnecessary compliance costs on employers in general,” Mr Woodhouse says. 

New Zealand has ratified the International Labour Organisation’s Maritime Labour Convention to ensure fair treatment of seafarers and protect the reputation of New Zealand exports, Workplace Relations and Safety Minister Michael Woodhouse and Associate Transport Minister Craig Foss announced today.

The Maritime Labour Convention is an international treaty adopted by the International Labour Organisation.  It sets minimum standards to address the health, safety and welfare of seafarers on commercial vessels.

The minimum wage will increase by 50 cents to $15.25 an hour on 1 April 2016, Workplace Relations and Safety Minister Michael Woodhouse announced today.

The starting-out and training hourly minimum wages rates will increase from $11.80 to $12.20 per hour, remaining at 80 per cent of the adult minimum wage.

“The Government has once again taken care to ensure the right balance has been struck between protecting our lowest paid workers, and ensuring jobs are not lost,” says Mr Woodhouse.

Good morning and thank you very much for inviting me to speak to you today.

This is my first speech in the Revenue portfolio and I am still in the process of getting my head around all that is happening.  Officials have been giving me in-depth briefings and I feel that it is a portfolio in great shape for which I am grateful to my predecessors for their work.

I’m also very aware of, and grateful to you for your valuable contribution in ensuring that our tax system runs as efficiently as we can make it.

The OECD’s automatic exchange of information (AEOI) initiative will set a global standard for sharing information with the objective of minimising tax evasion, says Revenue Minister Michael Woodhouse.

An issues paper, Implementing the global standard on automatic exchange of information, was released today for public feedback. The paper outlines proposals for implementing the global standard on the AEOI.