“To keep things simple and reduce compliance costs, particularly for small and medium businesses, qualifying expenditure of less than $10,000 would be immediately deductible in the current income year. This helps with business cash flow.
“We are supporting Kiwi companies to innovate and grow by making it easier to invest in new assets and business models. Current rules can be problematic. We are making the system fairer and keeping compliance costs low for businesses.”
The bill also contains the following proposals that have previously been subject to consultation:
■ New rules governing purchase price allocation, where parties to the sale of two or more assets with different tax treatments allocate the sales price between the assets for tax purposes.
■ New rules from the ongoing review of the taxation of land, particularly in relation to investment property and speculators. The changes will improve efficiency of the tax system and encourage productive use of land and properties.
■ Allowing dairy and beef cattle farmers who have unexpected taxable income as a result of their herd being culled (in pursuit of eradicating Mycoplasma bovis from NZ), to evenly spread that income forward over six years.
