Taxation (Budget Measures: Family Incomes Package) Act 2017

1: Title
This Act is the Taxation (Budget Measures: Family Incomes Package) Act 2017.
2: Commencement
1: This Act comes into force on the date on which it receives the Royal assent, except as provided in this section.
2: Part 1
3: Part 2 section 24
4: Section 24
1: Amendments to Income Tax Act 2007
3: Income Tax Act 2007 amended
This Part amends the Income Tax Act 2007 2018-04-01 Income Tax Act 2007 See s 2(2)
4: Section HC 24 amended (Trustees’ obligations)
1: In section HC 24(2) subparts LC and LD (which relate to tax credits for natural persons and for certain gifts) subpart LD (Tax credits for gifts and donations)
2: This section applies for the 2018–19 and later tax years.
5: Cross-heading and section LC 13 repealed (Tax credits for independent earners)
1: The cross-heading before section LC 13
2: Section LC 13
3: This section applies for the 2018–19 and later tax years.
6: Section MD 3 amended (Calculation of family tax credit)
1: Replace section MD 3(4)﻿(a)
a: for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, $5,303; and
b: for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, $4,745.
2: In section MD 3(6) subsection (4)﻿(a)﻿(i) and (ii), and (b)﻿(i) to (iii) subsection (4)﻿(a) and (b)
3: This section applies for the 2018–19 and later tax years.
7: Section MD 13 amended (Calculation of family credit abatement)
1: In section MD 13(3)﻿(a)﻿(i) $36,350, 22.5 cents $35,000, 25 cents
2: In section MD 13(3)﻿(a)﻿(ii) $36,350, 22.5 cents $35,000, 25 cents
3: This section applies for the 2018–19 and later tax years.
8: Section MF 7 amended (Orders in Council)
1: In section MF 7(1)﻿(a) section MD 3(4)﻿(a)﻿(i) and (b)﻿(i) and (ii) section MD 3(4)﻿(a) and (b)
2: Replace section MF 7(1)﻿(a)﻿(i)
i: correspond to the movement in the New Zealand Consumer Price Index that has not yet been taken into account by an increase:
3: Repeal section MF 7(1)﻿(ab)
4: Replace section MF 7(2)﻿(a)
a: in the case of the first Order in Council made under subsection (1)﻿(a)
b: in the case of the second Order in Council under subsection (1)﻿(a)
c: in the case of a subsequent Order in Council under subsection (1)﻿(a)
5: Replace section MF 7(2B) How movement in CPI determined
2B: For the purposes of subsections (1)﻿(a)﻿(i) and (2)﻿(a), (b), and (c)
a: the number that, when the period started, was the most recent quarterly index number of the New Zealand Consumers Price Index all groups excluding cigarettes and other tobacco products:
b: the number that, when the period ended, was the most recent quarterly index number of the New Zealand Consumers Price Index all groups excluding cigarettes and other tobacco products.
6: Repeal section MF 7(2C)
7: This section applies for the 2018–19 and later tax years.
9: Section RC 5 amended (Methods for calculating provisional tax liability)
1: In section RC 5(4) Sections RZ 3 (Standard method: 2010–11 to 2012–13 income years) and RZ 5D (Standard method or GST method: transition for Maori authorities) Section RZ 1
2: This section applies for the 2018–19 and later income years.
10: Section RC 10 amended (Calculating amount of instalment under standard and estimation methods)
1: Replace section RC 10(3)﻿(a)﻿(i)
i: for the preceding tax year, uplifted by 5% (modified as applicable by section RZ 2
ii: for the tax year before the preceding tax year, uplifted by 10% (modified as applicable by section RZ 2
2: This section applies for the 2018–19 and later income years.
11: Section RD 10 amended (Amounts of tax for PAYE income payments)
1: In section RD 10(2)﻿(a) $48,000 $52,000
2: This section applies for the 2018–19 and later income years.
12: Section RD 17 amended (Payment of extra pay with other PAYE income payments)
1: In section RD 17(2)﻿(a) $14,000 $22,000
2: In section RD 17(2)﻿(b) $14,000 $22,000
3: In section RD 17(2)﻿(b) $48,000 $52,000
4: In section RD 17(2)﻿(c) $48,000 $52,000
5: In section RD 17(4)﻿(c)﻿(ii) $14,001 $22,001
6: In section RD 17(4)﻿(c)﻿(iii) $48,001 $52,001
7: This section applies for the 2018–19 and later income years.
13: Sections RZ 1 to RZ 5D replaced
1: Sections RZ 1 to RZ 5D
RZ 1: Calculating amounts under standard method: section RC 5: 2018–19 and 2019–20 income years
When this section applies
1: This section applies to the calculation of a person’s provisional tax liability when—
a: section RC 5 (Methods for calculating provisional tax liability) applies for the person, for instalments payable for the 2018–19 and 2019–20 income years; and
b: the person is a new personal tax threshold person. Standard method modified: for 5% uplift
2: The standard method under section RC 5(2) is modified so that for the 2018–19 income year, instead of using 105%, the amount of provisional tax payable is calculated using 100%. Standard method modified: for 10% uplift
3: The standard method under section RC 5(3) is modified so that for the 2018–19 and 2019–20 income years, instead of using 110%, the amount of provisional tax payable is calculated using 105%. amount, income year, new personal tax threshold person, pay, provisional tax
RZ 2: Calculating amounts under standard method: section RC 10: 2018–19 and 2019–20 income years
When this section applies
1: This section applies to the calculation of a person’s provisional tax liability when—
a: section RC 10 (Calculating amount of instalment under standard and estimation methods) applies for the person, for instalments payable for the 2018–19 and 2019–20 income years; and
b: the person is a new personal tax threshold person. Standard method modified: for 5% uplift
2: In the calculation of the amount of an instalment, section RC 10(3)﻿(a)﻿(i) is modified so that for the 2018–19 income year, instead of using a 5% uplift, the amount of provisional tax payable is calculated using a 0% uplift. Standard method modified: for 10% uplift
3: In the calculation of the amount of an instalment, section RC 10(3)﻿(a)﻿(ii) is modified so that for the 2018–19 and 2019–20 income years, instead of using a 10% uplift, the amount of provisional tax payable is calculated using an 5% uplift. amount, income year, new personal tax threshold person, pay, provisional tax
2: This section applies for the 2018–19 and later income years.
14: Section YA 1 amended (Definitions)
1: This section amends section YA 1
2: In the definition of civil union partner and in section LC 13
3: Replace the definition of new personal tax rate person new personal tax threshold person
4: In the definition of non-refundable tax credit
5: In the definition of residual income tax
6: This section applies for the 2018–19 and later income years.
15: Schedule 1 amended (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits)
1: In schedule 1 $14,000 $22,000
2: In schedule 1 $14,001–$48,000 $22,001–$52,000
3: In schedule 1 $48,001 $52,001
4: In schedule 1 $12,530 $19,690
5: In schedule 1 $12,531–$40,580 $19,691–$44,440
6: In schedule 1 $40,581–55,980 $44,441–57,040
7: In schedule 1 $55,981 $57,041
8: In schedule 1 $16,800 $26,400
9: In schedule 1 $16,801–$57,600 $26,401–$62,400
10: In schedule 1 $57,601 $62,401
11: In schedule 1 $14,000 $22,000
12: This section applies for the 2018–19 and later income years.
16: Schedule 2 amended (Basic tax rates for PAYE income payments)
1: In the heading to schedule 2 and “ME” tax codes tax code
2: In schedule 2 or ‘ME’
3: In the heading to schedule 2 and “ME” tax codes tax code
4: In schedule 2 or ‘ME’
5: In schedule 2 $14,000 $22,000
6: This section applies for the 2018–19 and later income years.
17: Schedule 6 amended (Prescribed rates: PIE investments and retirement scheme contributions)
1: In schedule 6 $48,000 $52,000
2: In schedule 6 $14,000 $22,000
3: In schedule 6 $48,000 $52,000
4: In schedule 6 $48,000 $52,000
5: In schedule 6 $14,000 $22,000
6: In schedule 6 $48,000 $52,000
7: In schedule 6 $14,000 $22,000
8: This section applies for the 2018–19 and later income years.
18: Schedule 31 amended (Annualised equivalent amount for Part M)
1: In schedule 31 The following table is small in size and has 2 columns. This table is an amendment to the table in Schedule 31 of the Income Tax Act 2007 and should be read with that table to provide understanding of the context. Amount does not exceed $35,000 $35,000 Amount exceeds $35,000 but does not exceed $36,500 $36,500 Amount exceeds $36,500 but does not exceed $38,000 $38,000
2: This section applies for the 2018–19 and later tax years.
2: Amendments to other enactments
Amendments to Tax Administration Act 1994
19: Tax Administration Act 1994 amended
Sections 20 to 22 Tax Administration Act 1994 2018-04-01 Tax Administration Act 1994 See s 2(3)
20: Section 24B amended (PAYE tax codes)
1: In section 24B(3)﻿(a) when the employee is not entitled to a tax credit under section LC 13
2: Repeal section 24B(3)﻿(ab)
3: In section 24B(3)﻿(bb) $14,000 $22,000
4: In section 24B(3)﻿(c) $48,000 $52,000
5: In section 24B(3)﻿(d) $48,000 $52,000
6: This section applies for the 2018–19 and later tax years.
21: Section 33AA amended (Exceptions to requirement for return of income)
1: In section 33AA(3)﻿(c)﻿(i) $14,000 $22,000
2: In section 33AA(3)﻿(c)﻿(i) $48,000 $52,000
3: In section 33AA(3)﻿(c)﻿(ii) $48,000 $52,000
4: In section 33AA(3)﻿(d)﻿(i) $14,000 $22,000
5: In section 33AA(3)﻿(d)﻿(i) $48,000 $52,000
6: In section 33AA(3)﻿(d)﻿(ii) $48,000 $52,000
7: In section 33AA(3)﻿(e)﻿(i) $14,000 $22,000
8: In section 33AA(3)﻿(e)﻿(i) $48,000 $52,000
9: In section 33AA(3)﻿(e)﻿(ii) $48,000 $52,000
10: In section 33AA(3)﻿(f) $48,000 $52,000
11: This section applies for the 2018–19 and later tax years.
22: Section 33C amended (Return not required for certain providers of personal services)
1: In section 33C(b) $14,000 $22,000
2: This section applies for the 2018–19 and later tax years. Amendments to Taxation (Annual Rates and Budget Measures) Act 2011
23: Taxation (Annual Rates and Budget Measures) Act 2011 amended
Repeal sections 2(3), (4), and (5) 5(2), (3), and (4) 14B 2018-04-01 Taxation (Annual Rates and Budget Measures) Act 2011 See s 2(3) Amendment to Customs and Excise (Tobacco Products—Budget Measures) Amendment Act 2016
24: Customs and Excise (Tobacco Products—Budget Measures) Amendment Act 2016 amended
Repeal section 8 2017-05-29 Customs and Excise (Tobacco Products—Budget Measures) Amendment Act 2016 See s 2(4). Treated as coming into force on 30 May 2016