Parker DavidThird ReadingHon DAVID PARKER (Minister of Revenue): I move That the Taxation (Income Tax Rate and Other Amendments) Bill be now read a third time. For the benefit of members I will provide a brief recap of the measures in the bill. The bill introduces a new personal tax rate of 39c on incomes over $180000. The new rate applies for the 2021-22 and later income years. In introducing this new rate other rates will also need to be adjusted to maintain coherence. The bill therefore also amends the PAYE rules to introduce new codes for secondary earnings and for extra pay. There are similar amendments to the fringe benefit tax rate the resident withholding tax on interest rate employers' superannuation contribution tax retirement savings contribution tax taxable Māori authority distributions non-declaration rate and resident land withholding tax. In considering such a change to tax rates it is also important to consider the ability of who would choose to escape higher tax levels by sheltering their income in trusts. The bill therefore contains measures to allow Inland Revenue to obtain information about tax compliance amongst trusts. Some information is already able to be collected. In relation to other information requests I want to put a particular point deliberately on the third reading speech record. Section 17B of the existing Tax Administration Act is not intended to be undermined or read down as a consequence of the new section 17GB. Clause 33 of the bill inserts new section 17GB giving the commissioner the power to collect information for tax policy purposes. As I addressed in earlier stages of this debate it is contested by some taxpayers as to whether the section 17B powers already cover that. The enactment of this clause 33 of the bill is not intended to undermine the commissioner's arguments in that regard. We have also passed an amendment to the clause at the committee of the whole House stage to make it clear that the commissioner cannot use information collected pursuant to the new section 17GB as evidence in court against the person who provided it. However this restriction will not apply to information obtained by the commissioner under any other provision in the Tax Administration Act 1994 such as her main information-gathering power in section 17B whether that information is sought or collected before or after a section 17GB information collection occurs.This section recognises that the primary purpose of section 17B is in obtaining information for tax policy purposes while ensuring that the commissioner's other information-gathering powers are maintained. The new information-gathering powers to collect information from trustees in order to gain insight into whether the top personal tax rate of 39c is working effectively will provide better information to understand and monitor the use of structures and entities by trustees. In respect of the minimum family tax credit the threshold is reviewed regularly to ensure it remains effective in its policy objective of encouraging people off benefits and into paid income. This bill adjusts the minimum family tax credit for 2020-21 to reflect increases to the main benefits which were made in March this year. In bringing this important bill to its third reading I must thank the House for giving its urgent attention to the bill. Can I thank the Opposition for their involvement in the committee of the whole House stage. Can I also thank officials from across the Public Service who worked on the detail of the bill and the drafters. I commend the bill to the House.