Last chance to change tax policy

Time is running out to tell the Government what you think about changes to tax.

If you’d rather deal with a tax system that’s fast, simple and makes it easy to do the right thing, get online and start talking. Making tax easier, the six-week Government consultation being managed by Inland Revenue, closes on 23 July.

Your comments will influence what happens next.

The main proposal is to help people more easily manage their tax affairs and entitlements online through their own secure area on Inland Revenue’s website – like internet banking. Comprehensive online information will be provided too. These proposals could do away with the millions of paper letters, forms and booklets which are printed, filled out, and posted now.

This move to online transactions will also apply to businesses – the proposal is that business’ accounting software will be able to take care of routine tax obligations without the need to fill in separate forms.

There’s still time to give the Government your thoughts on proposals to make PAYE a final tax for many people in fulltime, permanent work. At the moment, people who think they might get a refund can check online and then request a personal tax summary to confirm they have a refund – which is paid into their bank account - or a tax bill they have to pay.

Under the proposal, there’s a much lower risk of errors in PAYE deducted each pay-day, so for many people there would be no end-of-year square-up and refund, but no tax bill either.

The Government also wants to know what people think about proposals to share some information – with appropriate safeguards - with other government departments. The idea is that people wouldn’t have to keep telling several government agencies the same thing over and over. This should help people swapping between a benefit and jobs, going on parental leave or making student loan repayments.

Thousands of people have already viewed the proposals, with many “voting” on likes and dislikes and commenting online. You can follow the discussion and join in at www.makingtaxeasier.ird.govt.nz before 23 July.

ENDS

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