Five Million Voices

Should Parliament pass this tax bill setting the 2024-25 income tax rates and making the accompanying administrative, GST, KiwiSaver and emergency-response changes?

This omnibus bill sets the annual income tax rates for the 2024-25 tax year and makes a range of changes to tax administration, the GST regime, KiwiSaver, and Inland Revenue-administered social policy rules, including remedial amendments. It establishes a standing set of tax measures that can be activated in response to emergency events.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters said the generic emergency-response measures let future governments deploy tax relief such as payment deferrals and penalty waivers without designing them from scratch each time.
  • Supporters said the bill makes it easier for young people under 16 to enrol in KiwiSaver with one guardian's consent and addresses locked-in funds for migrants transferring UK pensions.
  • Supporters said the remedial measures, including fixing the minor beneficiaries rule for disability trusts, keep tax law fit for purpose and were well received by submitters.
Why oppose it
  • Opponents said the annual rates in Part 1 do not adequately ensure the revenue system can fund services such as health, education, and defence.
  • Opponents said the regulatory impact statement shows the income-tax changes direct most of their value to higher-income households, with the bottom quintile receiving a small share and some households gaining nothing.
  • Opponents said the tax cuts were funded by measures such as reintroduced prescription fees, higher fees and levies, and reduced public spending, which they linked to increased inequality and child hardship.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

This omnibus tax bill sets the income tax rates for the 2024–25 year and makes a wide range of changes to how tax is administered. Its headline “emergency response” feature lets the government switch on targeted tax relief quickly by Order in Council during a future declared emergency — for example easing fringe benefit tax or suspending certain property rules — instead of passing fresh legislation each time, as happened after Cyclone Gabrielle. It also lifts employee share scheme thresholds, simplifies GST for some financial services, tightens certain investment-entity rules, and introduces crypto-asset reporting.

As a standard annual tax vehicle, it packages Inland Revenue’s yearly rate-setting with numerous remedial and policy tweaks. The argument for is efficiency and preparedness: pre-authorising emergency tax relief means help can reach affected people and businesses faster after a disaster, without waiting for Parliament. The argument against is that delegating tax-relief decisions to Cabinet through Orders in Council reduces the direct parliamentary scrutiny that normally applies to changes in tax.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Bill · Second Reading, 4 Mar 2025
Parliament voted 68–55 — it passed.