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Trade Minister Todd McClay has today welcomed entry-into-force of the New Zealand-Korea Free Trade Agreement.

“This high quality agreement, negotiated and signed by former Trade Minister Tim Groser, will bring significant commercial benefits to New Zealand exporters,” says Mr McClay.

“From today, current duty-free access to the Korean market is ‘bound in’, and existing tariffs will be eliminated on $793 million, or 48 per cent, of New Zealand exports.

Trade Minister Todd McClay welcomes agreement of the WTO Nairobi package reached at the 10th World Trade Organisation Ministerial Conference in Nairobi, Kenya, and says the elimination of export subsidies is significant for New Zealand agriculture exporters.

Trade Minister Todd McClay has welcomed the successful conclusion of negotiations on the expansion of the World Trade Organisation Information Technology Agreement (ITA) in Nairobi, Kenya.

“This agreement will remove tariffs from 201 products, including new-generation semi-conductors, GPS navigation systems, MRI machines, telecommunications satellites and touch screens.  

Trade Minister, Todd McClay, today issued a call for public submissions on the proposed Free Trade Agreement (FTA) negotiations between New Zealand and the European Union (EU).

“New Zealand enjoys a close and long-standing relationship with the EU and last year concluded a Partnership Agreement on Relations and Cooperation.  A modern, high-quality FTA is the missing link in our important relationship,” says Mr McClay.

Todd McClay will next week attend the 10th WTO Ministerial Conference in Nairobi, Kenya. 

This will be Mr McClay’s first duty as Trade Minister, a portfolio change which takes effect on Monday.

“Key issues for trade and development will be in the spotlight at Nairobi, including in the important area of agriculture,” says Mr McClay. 

“WTO Members will be trying to agree a package of measures from the Doha Round agenda, which has been stalled since 2008.

A bill that will see offshore property speculators pay a withholding tax on profits from property transactions under the ‘Bright-line test’, and GST applied to online purchases of services and intangibles from overseas suppliers has passed its first reading.

Revenue Minister Todd McClay says the Residential Land Withholding Tax (RLWT), GST on Online Services, and Student Loans Bill is about fairness.

Acting Foreign Minister Todd McClay today expressed New Zealand’s deep disappointment at the Japanese Government’s decision that it will return to the Southern Ocean to undertake whaling this season.

“New Zealand is strongly opposed to whaling in the Southern Ocean. We call on Japan to take heed of the 2014 International Court of Justice decision and international scientific advice concerning their whaling activities,” Mr McClay says. 

Revenue Minister Todd McClay today announced that the new prescribed interest rate used to calculate fringe benefit tax on low-interest loans provided by employers to their employees will be 5.99%.

The new, lower rate will apply for the quarter beginning on 1 October 2015 and for subsequent quarters.  The previous rate was 6.22%.

The FBT rate on employer-provided low-interest loans is reviewed regularly to align it with the results of the Reserve Bank’s survey of variable first mortgage housing rates to ensure it is in line with market interest rates.

Low-income working families who are eligible for the minimum family tax credit (MFTC) will receive an increase for the 2016–17 tax year, Revenue Minister Todd McClay has announced.

The tax credit currently guarantees recipients an after-tax income of $23,036 a year ($443 a week).  This will increase to $23,764 a year ($457 a week) for the 2016–17 tax year, beginning on 1 April 2016.

Good morning.

Thank you for inviting me to join you once again. Over the last few years it has always been my great pleasure to come and speak to you. 

Your role as payroll professionals and mine as Revenue Minister have a common interest in the smooth running of the tax system.  If it works well for you, then it’s working for me.

We all use the tax system at one time or another, whether it is paying income tax, child support, paying off a student loan or receiving tax credits, it all goes through the tax system.

It’s great to be here with you again.

First I want to say thank you. We have had an extremely busy year in the tax community. It has been a year of heavy lifting.

In just this year we’ve put out 14 consultation papers on policy, seen the introduction or passing of seven bills, and have been involved in the development of other legislation.

There has also been significant progress on the Business Transformation (BT) front from a tax administration point of view.  

That is huge. 

A tax bill introduced today proposes a new withholding tax on sales of residential property by people who live overseas and go on to sell the property within two years of purchase. 

The proposed measure is the third part of the Government’s investment property tax reforms announced as part of Budget 2015.

A tax bill introduced to Parliament today will allow information on student loan borrowers living in Australia to be shared between Inland Revenue and the Australian Taxation Office, ensuring defaulters pay their outstanding loan balances.  

Revenue Minister Todd McClay says measures proposed in a tax bill introduced today are about fairness and equity.

“It is about creating a level playing field for collecting GST and putting New Zealand businesses and jobs ahead of the interests of overseas suppliers”, says Mr McClay.

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST.

Revenue Minister Todd McClay says the passing of the bright-line legislation in Parliament today is an important tool to ensure property speculators pay their fair share of tax.

The bill, which contains further measures to strengthen the property tax rules announced as part of Budget 2015 passed its third reading in Parliament today.

Mr McClay says proposals in the Taxation (Bright-line Test for Residential Land) Bill were part of a three-pronged approach announced by the Government in May to tighten the property investment rules.

Revenue Minister Todd McClay says Inland Revenue’s Business Transformation programme is likely to take less time, cost less, and deliver more benefits than the original projections.

Mr McClay was speaking at the Trans-Tasman Business Circle, where he released two consultation papers. The first, making it simpler for businesses to manage PAYE and GST and the second looking at the Tax Administration Act.

Revenue Minister Todd McClay says New Zealand and international companies are reaping the benefits of the billion dollar programme to modernise and simplify New Zealand’s tax administration.

“We said the transformation of New Zealand’s tax administration would use a mixture of New Zealand and international expertise – and where a New Zealand company could do the work, I would expect they would be given the opportunity to.

It is my pleasure to be with you here today to unveil the next important stage of how the Government is making tax simpler for business. 

Over the last few years we have taken the first steps in what is a very significant journey towards a simpler tax system for New Zealand.

While our tax system is among the best in the world, and is internationally recognised for that, I know that we can do better. The reality is that as the world becomes more and more connected, and more digital, we need to keep looking at what we can do to improve.

Minister of Revenue Todd McClay has welcomed a decision by the Cook Islands government to implement the 'Automatic Exchange of Financial Account Information in Tax Matters Agreement' (AEOI) and says the Cooks Islands and New Zealand will play their part to target international tax avoidance.  

AEOI is at the heart of international efforts to reduce international tax evasion, and strengthen international efforts to increase transparency among financial institutions and tax administrations.

Associate Foreign Minister Hon Todd McClay has reiterated New Zealand’s commitment to achieving an ambitious outcome to the upcoming Paris Climate change talks at the Asia-Europe Meeting Foreign Ministers Meeting (ASEM) in Luxembourg this week.

“Political momentum for the new climate change agreement to be concluded at COP21 in Paris is building,” says Mr McClay.

In his speech to the 53 European and Asian members of ASEM he said the Asia-Pacific region regularly experiences natural disasters where climate change is playing a role.

HRH the Grand Duke of Luxembourg, Madame Chair – EU Representative and Vice President, Mogherini, Ministers, and delegates.

On behalf of the Northeast and South Asia group of Asian countries I would like to thank in advance Luxembourg and the European Commission for their excellent arrangements in hosting and chairing this ASEM Foreign Ministers Meeting.

The Taxation (Bright-line Test for Residential Land) Bill passed its second reading in Parliament tonight.  

The bill proposes an easy-to-understand “bright-line” test, requiring income tax to be paid on gains from residential property purchased and sold within two years.  The only exceptions are an owner’s main home, inherited property, or the transfer of relationship property.

Associate Foreign Minister Hon Todd McClay is travelling to Luxembourg to attend the biennial Asia-Europe Meeting (ASEM) Foreign Ministers Meeting this week.

ASEM members include 53 European and Asian nations and represents nearly 60 per cent of the world’s GDP and around 60 per cent of its population. 

New Zealand is coordinator for the North East and South East Asian members of ASEM – a group that includes New Zealand, Australia, Bangladesh, China, India, Japan, Kazakstan, Korea, Mongolia, Pakistan and Russia.

Associate Trade Minister Hon Todd McClay is travelling to the Cook Islands to attend the Pacific Islands Forum Trade Ministers Meeting this week.
 
“Trade is one of the many important strands to New Zealand’s relationship with Pacific Island countries. The future of the Pacific’s regional economic development rests in finding ways to facilitate trade linkages and reducing supply side constraints,” says Mr McClay.