Barry Maggie: Taxation (Annual Rates Foreign Superannuation and Remedial Matters) Bill — Third ReadingText is incorporated into the Bound VolumeBarry Maggie: Taxation (Annual Rates Foreign Superannuation and Remedial Matters) Bill — Third Reading[Sitting date: 20 February 2014. Volume:696;Page:16205. Text is incorporated into the Bound Volume.]MAGGIE BARRY (National—North Shore): I rise to talk at the third reading of the Taxation (Annual Rates Foreign Superannuation and Remedial Matters) Bill. As I have said in my previous calls and would like to affirm at the beginning of this call this bill—with all of its complexities with all of its technical difficulties with all of the things that it seeks to readjust—is very simple at one level which is that we are trying to make this tax system fairer and more transparent so that people will comply with it. That is the essence of it. The issue of foreign superannuation is probably one of the more interesting aspects of this legislation for many people because it impacts on so many people’s lives. We really need to keep in mind that with the current rules for New Zealanders who live overseas and for the people who come to live in our country and bring with them their own superannuation funds people have had to deal with some very complicated and variable superannuation schemes. This bill really addresses those complexities.Under the proposed changes from 1 April 2014 lump sums from foreign superannuation schemes will be taxed only when they are withdrawn or when they are transferred to a New Zealand or to an Australian scheme. This tax would depend on the gains made while the person has been a New Zealand resident. That is fair because it uses one of two calculations options. Not being taxed on accrual under the foreign investment fund rules is a major simplification. It is going to make it a whole lot easier for a lot of people who want to come and settle in this country who have been genuinely confused—as have their advisers. People came and made submissions to us talked to us at length about how tax specialists and experts found this to be a very confusing area. I commend the advisers I commend the people who have drafted this because it is complicated and it has been a minefield. I think the path has been trod very well and very carefully so I am very pleased with the legislation as it is. I know that Todd McClay as the responsible Minister on this piece of legislation is as well.It has been shepherded through the Finance and Expenditure Committee of which I am currently deputy chair. Todd McClay was the chair of the committee at the time when this was first introduced. I give you that background by way of explaining the rigour that has gone into this and the length of discussion that has gone on as well. We really do want to make it as simple as possible for people to meet their tax obligations—for example getting back to the foreign superannuation one of the measures that Iparticularly approve of is that when people are transferring their foreign superannuation scheme interest into KiwiSaver they can then make a withdrawal from the KiwiSaver scheme to pay their tax bill. That is going to allow people who have complied with their tax obligations by using those foreign investment fund rules before May 2013 to continue using those rules in relation to that interest after 2014 which is when those new proposed rules will of course come into effect. Those measures do make it fairer and easier for people who have not actually got the amount of money that they might need to pay their tax.As with the student loans amendment legislation we are trying to make it possible for people to pay back their loans and to do what they need to do because they need to actually meet their obligations. As we have said about the student loan scheme it is not a gift; it is a loan. People have obligations to pay it back. That is an issue of fairness and so too is this bill. I commend it to the House. Thank you.