A Week in Review
CPI adjustments released
IR has released two CPI adjustments, the first in relation to the standard-cost household for boarding service providers, and the second in respect of the standard-cost household service for childcare providers.
In both cases, for providers who have a standard 31 March balance date, the CPI adjustments will apply to their calculations in respect of the income year ended 31st March 2019.
For boarding service providers, the weekly variable standard-cost for the first two borders will be $270 each (previously $266), with the standard-cost for the third and subsequent boarders reducing to $222 each (previously $218).
For childcare providers, the variable standard-cost component is $3.60 per hour per child (previously $3.55 per hour per child) and the administration and record-keeping fixed standard-cost component will be $352 per annum for a full 52 weeks of childcare services provided (previously $347 per annum).
Government releases two pre-Budget announcements
Budget 2019 is to be delivered by the Minister of Finance, Hon Grant Robertson on Thursday, 30th May 2019
In a pre-Budget announcement, however, the Minister of Revenue, Hon Stuart Nash, has signalled an intention to align the GST rules on telecommunication services with OECD guidelines and with the treatment of other remote services. Presently there are special rules for telecommunication services, and it is felt that these rules are now out of step with the OECD’s guidelines for GST and for establishing taxing rights, raising the possibility that a person can either be taxed twice or not at all for using global roaming services.
An issues paper has been released alongside the media statement issued by the Minister, and it is intended that the new rules will apply from 1st October 2020. Submissions on the issues paper are requested to be lodged by no later than 28th June 2019.
And not to be left out in the cold, the RT Hon Winston Peters has also made a pre-Budget announcement in relation to his treasured racing industry.
The present betting levy (racing totalisator duty) which is paid by the racing industry to the Crown, and in 2018 represented 4% of betting profits or $13.9 million, will be repealed and phased out over a three year period. The intention is to have the freed-up funds then redirected to the racing and sports sector, as a measure to attempt to revitalise the racing industry.