It may feel like the Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Act 2021 was only just passed, but the year has continued to speed along and late last month saw the introduction of the Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill (we will call it “PERM”, as it seems to have curled more than a few peoples hair when the GST and KiwiSaver news hit the media, but more on that later). Technically the PERM was withdrawn and has been reissued without the GST and KiwiSaver clauses.
As always, with any annual rates bill, the first part of the PERM Bill sets the annual tax rates for the 2022-23 income year. This part of the Bill has to be enacted by 31 March 2023, as without it the Government cannot collect income tax past 31 March 2023. There have been no changes by the Government to the income tax rates or brackets, even with the constant rumblings about tax bracket creep and high inflation.
In this article, we will summarise a number of the changes or remedial matters in the PERM Bill that are not the focus of specific articles later in this issue of Tax Alert.
There is a lot in the Bill and we encourage you to read the more detailed articles that follow, as they are very useful guides to the changes coming. Please contact your usual Deloitte advisor if you would like to discuss how the changes in the Bill will impact you or your business.