Changes to GST

Greenlion News

New Taxation Act passed on 26 June 2019


The Taxation (Annual Rates for 2019 -20, GST Offshore Supplier Registration and Remedial Matters) Act has now received Royal Assent and is passed into law.



Losses from rental properties are now ring fenced


The biggest change to arise from this new bill is that property investors will no longer have the ability to offset any losses incurred from rental properties against other sources of income eg salaries, self-employed income etc.


The losses from rental properties can now only be applied against future income earned from any rental property owned by the same entity.


This change will take effect from 1 April 2019.

Changes to GST on overseas purchases


This new bill also introduces changes to the way that GST is collected from offshore businesses.


Previously, the duty to return GST on overseas purchases greater than $400 lay with the consumer and this GST was then collected by Customs when goods were imported into New Zealand.


Now, overseas suppliers with turnover greater than $60,000 p.a who supply low value goods will be required to register for GST. They will then need to collect GST on all sales made to NZ consumers and return the GST portion to the IRD.


Customs will continue to collect GST at the border on goods valued at $1,000 or more.


The changes to the way GST is collected will take effect from 1 December 2019.


Please feel free to contact us if you have any questions regarding these changes and we will be happy to help.

Greenlion News
December 1, 2021

Final Support before the ‘freedom’ of the traffic lights…

On Monday the Government announced the support available under the new COVID Protection Framework. They also announced that the final Wage Subsidy and Resurgence Support Payment are now available, along with a new Transition Payment. We have set out more details below.   Wage Subsidy – Round 8 The 8th round of the Wage Subsidy…

Greenlion News
October 22, 2021

The goal is 90% – here’s the support package

Todays announcement has certainly given us something to think about and to work towards.  If you haven’t already we do urge you to get vaccinated. Your action now could be the difference for some of our clients coming out with a business intact.  In todays announcement Minister Robertson has shared the path forward as we…

Greenlion News
September 30, 2021

Limitation of Interest Deductibility on Residential Property Investment Released

Earlier this week the Government released draft legislation outlining some detail in relation to the March interest limitation proposals.   The proposals are contained in Supplementary Order Paper No. 64. It is pretty dry and the devil is in the detail so please bear with us.    We have attempted concisely to summarise the key…