This Government bill amends the Income Tax Act 2007, the Student Loan Scheme Act 2011 and the Tax Administration Act 1994 to give effect to tax measures announced as part of Budget 2026. Its measures include a maximum $100,000 threshold of gifts qualifying for the donation tax credit, an income tax exemption for non-resident contractors on the dry leasing of aircraft and aircraft parts, taxing a shareholder on an outstanding loan six months after a company is removed from the register, and several simplification changes to the Working for Families scheme. It has since passed into law as the Taxation (Budget Measures) Act 2026.
Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.
This bill enacts a set of tax measures announced in Budget 2026. It caps the gifts that qualify for the donation tax credit at $100,000, exempts non-resident contractors' tax on the dry leasing of aircraft and parts, and taxes a shareholder on an outstanding company loan six months after the company is removed from the register. It also simplifies the Working for Families scheme, including removing low-risk adjustments from the family-scheme-income calculation, lifting an adjustment de minimis to $8,000, and streamlining residence requirements.
Supporters argue the package tidies and simplifies tax settings, reduces compliance friction in Working for Families, and closes specific loopholes. Others may examine the distributional effect of capping the donation tax credit and the Working for Families changes, and whether particular measures are well targeted.
See the Parliament.nz ↗ site for the full bill.