✦ Plain-English Summary

Treasury Laws Amendment (2020 Measures No. 5) Bill 2020

What it does

This bill makes three tax changes. First, it makes certain coronavirus support payments to small businesses completely tax-free (so they won't count as taxable income). Second, it allows people to pay money into KiwiSaver accounts (a New Zealand retirement scheme) without tax consequences. Third, it updates the list of organisations eligible to receive tax-deductible donations.

Why it matters

Small businesses that received government grants during COVID won't face a surprise tax bill on that relief money. The KiwiSaver change helps Australians working in New Zealand manage their retirement savings. Updating charity deductions keeps the donation system current and encourages giving to legitimate organisations.

Key details

• Small business grants: The coronavirus payments under the government's economic response package are now explicitly tax-free and won't be counted as income when you do your tax return.
• Timeline: The small business grant provision started the day after the bill passed. The KiwiSaver changes will be activated by government proclamation (announcement) at a later date. The charity deductions update takes effect on the next quarterly date (1 Jan/Apr/Jul/Oct) after the bill received approval.
• Who's affected: Small businesses that got COVID support payments, Australians with KiwiSaver accounts, and organisations seeking tax-deductible status.

Official Description

Amends the: Income Tax Assessment Act 1997 to: enable the minister to declare certain grant programs as eligible for non-assessable non-exempt income tax treatment under an instrument-making power; and update the list of deductible gift recipients to include Neighbourhood Watch Australasia; and Income Tax Assessment Act 1997 and Superannuation (Unclaimed Money and Lost Members) Act 1999 to facilitate the payment of unclaimed superannuation held by the Commissioner of Taxation directly to New Zealand KiwiSaver schemes.

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.