Tax Policy Changes
This section details the changes to forecast tax revenue since the Half Year Economic and Fiscal Update as a result of changes in tax policy. Table 10 gives a full breakdown of the changes, while the supplementary text describes the specific policy changes.
|
Year ending 30 June $ millions |
2013 Forecast |
2014 Forecast |
2015 Forecast |
2016 Forecast |
2017 Forecast |
Total 5 years |
|---|---|---|---|---|---|---|
| Specified mineral mining | .. | 3 | 27 | 30 | 30 | 90 |
| Property compliance | .. | .. | 45 | 45 | 45 | 135 |
| Salary trade-offs | .. | (2) | (17) | (17) | (17) | (53) |
| Thin Capitalisation improvements | .. | .. | 1 | 9 | 10 | 20 |
| Other measures | .. | .. | (2) | (2) | (3) | (7) |
| Total | .. | 1 | 54 | 65 | 65 | 185 |
Source: The Treasury
Changes in tax policy
Specified mineral mining
The rules for the taxation of specified mineral mining are to be more closely aligned with general income tax rules.
Property compliance
Inland Revenue is to be provided with continued funding for audit and compliance work in the property sector.
Salary trade-offs
The Government has decided not to proceed with some proposed changes to the Fringe Benefit Tax rules.
Thin Capitalisation improvements
Thin capitalisation rules are to be changed to ensure that separate investors acting together are not unfairly advantaged over a single non-resident investor.
Other measures
A number of policy changes that, individually, are each below the materiality threshold of $10 million p.a.
