Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill
This bill does several things at once. First, it sets the income tax rates for the 2025–26 year — these stay the same as before. It also makes a large number of smaller changes to tax rules to fix errors, reduce paperwork for businesses and individuals, and update how certain situations are taxed. Examples include making income from selling excess solar electricity tax-free, clarifying rules around gift cards from employers, and making it easier for people who have moved back to New Zealand to handle their overseas investments.
What this affects
Tap a topic to see how this bill touches it, and the parts of the text that show it.
The bill sets income tax rates for 2025–26 (unchanged), raises thresholds so fewer people face complex financial rules, and makes various changes to reduce paperwork for businesses and individuals.
Income tax imposed by section BB 1 of the Income Tax Act 2007 must, for the 2025–26 tax year, be paid at the basic rates specified in schedule 1 of that Act.
In section EW 57(1), replace '100,000' with '200,000'.
In section EW 57(2), replace '1,000,000' with '2,000,000'.
Progress through Parliament
Have your say
This bill is open for public submissions to the Finance and Expenditure Committee. Anyone can tell the committee what they think, and you don’t need to be an expert. Submissions close 22 October 2025.
Bill text sourced from legislation.govt.nz (Parliamentary Counsel Office). Arapono’s summary and breakdown are drafted with AI grounded in that official text and reviewed by an Arapono editor for accuracy and neutrality before publishing. Arapono is non-partisan and takes no position on this bill.