8 June 2005 Media Statement

NZ-Australia double tax agreement under review

Australia and New Zealand are reviewing their 1995 Double Tax Agreement to see where it needs updating.

Announcing the review, Revenue Minister Michael Cullen said, given the importance of the DTA to the trans-Tasman business relationship, it was vital that it be regularly updated,” Dr Cullen said.

“Talks held between officials in Wellington last month covered several matters of mutual importance, including whether changes should be made by amending the agreement or as part of a comprehensive re-negotiation.

“That is a decision both governments will be making over coming months, and will in large part depend on whether New Zealand wants to lower withholding rates.

“The New Zealand government is now reviewing its policy on this issue and will be seeking feedback from interested parties.

“As an interim measure it is likely that the current DTA will be updated to deal with administrative issues such as exchange-of-information requirements between the two countries.

“That will be important, for example, for enabling Australia to have access to sufficient information to extend the benefits of its Wine Equalisation Tax Rebate to New Zealand wine producers who export to Australia,” Dr Cullen said.

ENDS

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