Clause 3 provides that Part 1 amends the KiwiSaver Act 2006.

Clause 4 amends section 4 to consequentially amend the definitions of employer contribution and salary or wages, insert a definition of payday, and repeal a provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 5 amends section 18, as a consequence of repealing the provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 6 amends section 48 to reduce the period after which a person’s provisional allocation to a KiwiSaver scheme chosen by their employer becomes final, if the employee does not opt out or choose their own KiwiSaver scheme, from 92 days to 62 days after the Commissioner receives the first contribution in respect of the employee.

Clause 7 amends section 51. Subclause (1) corrects an incorrect cross-reference. Subclauses (2) and (3) reduce the time after which an employee’s provisional allocation to a default KiwiSaver scheme becomes final, if the employee does not opt out or choose their own KiwiSaver scheme, from 92 days to 62 days.

Clause 8 amends section 56 to reduce the time within which a KiwiSaver member’s old scheme provider, upon receiving notice that the member has transferred to a new scheme provider, must transfer the member’s accumulated savings and information to the new scheme provider from 35 days to 10 working days.

Clause 9 amends section 57, as a consequence of the reducing the KiwiSaver provisional period and transfer period for KiwiSaver member’s changing scheme providers.

Clause 10 amends section 59B to remove the 3-month grace period persons who have been invalidly enrolled in KiwiSaver as a result of not meeting residency requirements have to meet those requirements after their scheme provider becomes aware of the invalid enrolment, effectively requiring their accounts to be closed as soon as their provider becomes aware of the invalid enrolment.

Clause 11 amends section 59C, which provides for when invalid enrolments in KiwiSaver can be retrospectively validated, as a consequence of removing the 3-month grace period for meeting residency requirements.

Clause 12 amends section 59D, which provides for what must happen when an invalid enrolment in KiwiSaver is not retrospectively validated, as a consequence of removing the 3-month grace period for meeting residency requirements.

Clause 13 inserts new section 63B to require employers, in certain circumstances, to provide the Commissioner with information about the amount of salary or wages that an employee KiwiSaver contribution was deducted from.

Clause 14 amends section 64, which relates to KiwiSaver employee contribution rates. Subclause (1) replaces subsections (2) and (3) to allow an employee to change their KiwiSaver contribution rate by giving notice to their scheme provider or the Commissioner. Subclause (2) amends subsection (4), as a consequence of repealing the provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 15 replaces section 69, which relates to unremitted employee KiwiSaver contributions, to provide that they are treated as received by the Commissioner on the date of the payday on which they were reported as deducted, or on the 15th of the month in which they were deducted if the payday is not reported.

Clause 16 replaces the heading to section 71.

Clause 17 amends section 73, which authorises the Commissioner, based on information received from employers about amounts of employee KiwiSaver contributions they have deducted from their employees’ salary or wages, to enter those amounts into the Inland Revenue KiwiSaver Holding account and pay those amounts on to KiwiSaver scheme providers. The amendments extend the section’s application to employer KiwiSaver contributions.

Clause 18 amends section 74, to update cross-references, as a consequence of repealing section 76.

Clause 19 amends section 75 to reduce the holding period for a person’s initial KiwiSaver contributions from 92 days to 62 days.

Clause 20 repeals section 76, which gives the Commissioner a discretion to hold a person’s employer KiwiSaver contributions until the Commissioner next pays employee KiwiSaver contributions for that person to their scheme provider, as a consequence of authorising the Commissioner to pay employer contributions to scheme providers based on information received from employers.

Clause 21 replaces section 78, which authorises the Commissioner to pay amounts out of a Crown Bank Account in respect of unremitted amounts of employee KiwiSaver contributions, to extend the section’s application to unremitted amounts of employer KiwiSaver contributions.

Clause 22 amends section 81 to clarify that a provider must refund to the Commissioner contributions paid to the provider by the Commissioner in respect of a member of that provider’s KiwiSaver scheme if the member opts out.

Clause 23 replaces section 85, which provides for the time when KiwiSaver contributions are treated as received by the Commissioner for the purpose of the payment of interest. The replacement section provides that employee and employer contributions are generally treated as received on the date of the payday for the payment of salary or wages to which they relate (if reported), or, otherwise, on the 15th day of the month in which the payment of salary or wages to which they relate was made.

Clause 24 amends section 88, as a consequence of repealing the provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 25 amends section 93 to require employers, in certain circumstances, to provide the Commissioner with information about the rate of employer’s superannuation contribution tax applied to an employer KiwiSaver contribution.

Clause 26 inserts new sections 95B to 95D. New section 95B provides that unremitted employer KiwiSaver contributions are treated as received by the Commissioner on the date of the payday reported for the payments of salary or wages to which they relate, or on the 15th of the month in which the payments of salary or wages to which they relate were made if the payday is not reported. New section 95C allows the Commissioner to hold unexplained remittances of employer KiwiSaver contributions until satisfied how to deal with them appropriately. New section 95D provides for the time when unexplained remittances of employer contributions are treated as received.

Clause 27 replaces the heading to section 96.

Clause 28 repeals section 98, which relates to short payments by employers of KiwiSaver contributions, as a consequence of authorising the Commissioner to pay amounts out of a Crown Bank Account in respect of unremitted amounts of employer KiwiSaver contributions.

Clause 29 amends section 98A, which relates to how short payments of employer KiwiSaver contributions are quantified, as a consequence of repealing section 98, and to remove redundant references to the Income Tax Act 2007.

Clause 30 repeals section 99, which relates to short payments of employer KiwiSaver contributions, as a consequence of authorising the Commissioner to pay amounts out of a Crown Bank Account in respect of unremitted amounts of employer KiwiSaver contributions.

Clause 31 amends section 101, which relates to refunds of employer KiwiSaver contributions by providers, by inserting new subsection (1B) to clarify that a provider must refund to the Commissioner contributions paid to the provider by the Commissioner in respect of a member of that provider’s KiwiSaver scheme if the member opts out.

Clause 32 inserts new section 101AA which sets out what the Commissioner must do with amounts of employer contributions refunded by a KiwiSaver scheme provider after a member opts out.

Clause 33 amends section 104, as a consequence of repealing the provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 34 amends section 108, as a consequence of repealing the provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 35 amends section 112B, as a consequence of repealing the provision that deems references in the Act to 3 months to be references to a period of 92 days.

Clause 36 inserts new section 221B which sets out what the Commissioner is entitled to assume for the purposes of certain provisions in Part 3 of the KiwiSaver Act 2006.

Clause 37 amends section 226, which relates to kick-start contributions by the Crown, as a consequence of reducing the holding period for a person’s initial KiwiSaver contributions from 92 days to 62 days.

Clause 38 replaces schedule 1, clause 8(2) to consequentially update when employee KiwiSaver contributions are treated as received for the purpose of withdrawals for the purpose of purchasing a first home.

Clause 39 provides that Part 2 amends the Student Loan Scheme Act 2011.

Clauses 40 to 44 enable the Commissioner, on application, to treat certain borrowers as being physically in New Zealand if they have a serious illness.

Clause 45 enables the Commissioner to notify borrowers’ employers once a loan balance is close to zero. This is for the purpose of reducing the likelihood that deductions from salary and wages will result in a borrower’s loan balance falling below zero.

Clauses 46 to 52 and 54 change the term “repayment holiday” to “temporary repayment suspension”.

Clause 53 relates to overseas-based borrowers with serious illnesses. See clause 42. This amendment allows a borrower to challenge a decision by the Commissioner.

Clause 55 updates the table of application, savings, and transitional provisions in section 220.

Clause 56 relates to overseas-based borrowers with serious illnesses. See clause 42. This amendment requires these borrowers to notify the Commissioner of their worldwide income each tax year in accordance with section 114 of the Student Loan Scheme Act 2011.

Clause 57(1) to (3) amends the savings provision that currently provides that the repealed Student Loan Scheme Act 1992 continues to apply to the tax year ending on 31 March 2012 and all earlier tax years. The effect is to phase out the application of that Act to those earlier tax years except to the extent that a borrower’s repayment obligation can be reopened under new clauses 23 to 27 of Schedule 6 of the Student Loan Scheme Act 2011 or to take into account new clause 28 of that schedule.

Clause 57(4) has 2 effects. First, it sets out the circumstances in which a borrower’s repayment obligation for the tax year ending on 31 March 2013 and all earlier tax years can be reopened. Secondly, it enables loan balances to be reduced to zero if the loan resulted from identity theft, etc.

Clause 58 sets out the clauses that amend the Income Tax Act 2007.

Clause 59 amends section BB 2 to correct the description of the coverage of subpart BF.

Clause 60 amends section CB 16A to clarify the period for which the main home exclusion for the bright-line test applies.

Clause 61 amends section CC 1 to repeal a redundant provision.

Clause 62 amends section CC 1B to ensure that a one-off payment in consideration for the grant of a permanent easement is not taxable.

Clause 63 amends section CD 4 to update the defined term used in referring to transfers of value by a company.

Clause 64 amends section CD 5 to update the defined term used in referring to transfers of value by a company.

Clause 65 amends section CD 6 to update the defined term used in referring to transfers of value by a company.

Clause 66 amends section CD 27 to update the defined term used in referring to transfers of value by a company.

Clause 67 amends section CD 29C to update the defined term used in referring to transfers of value by a company.

Clause 68 amends section CD 38 to update the defined term used in referring to transfers of value by a company.

Clause 69 inserts new section CE 7CB, to define market value methodologies for the purposes of employee share schemes in terms of volume weighted average prices for listed shares and options.

Clause 70 amends section CW 26C to ensure that share reoganisations do not remove exempt ESS status, and to ensure that there are flexible and appropriate exit provisions in exempt ESSs.

Clause 71 inserts new section CW 26DB, to define market value methodologies for the purposes of exempt ESSs in terms of volume weighted average prices for listed shares and options.

Clause 72 amends section CW 38 to replace 2 subsection headings.

Clause 73 amends section CW 38B to replace 2 subsection headings.

Clause 74 amends section CW 39 to replace 2 subsection headings.

Clause 75 amends section CW 56 to ensure that income derived by non-resident aircraft operators, covered by a determination by the Commissioner, from air transport to New Zealand is exempt from New Zealand income tax.

Clause 76 amends section CX 17 to update the defined term used in referring to transfers of value by a company.

Clause 77 amends section CX 22 to update the defined term used in referring to transfers of value by a company.

Clause 78 amends section EE 47 to replace a subsection heading.

Clause 79 amends section FC 1 to update the defined term used in referring to transfers of value by a company.

Clause 80 amends section FE 5 to remediate an inconsistent linkage between paragraphs.

Clause 81 amends section FE 6 so that the section requires apportionment of the total deduction of an entity for interest expenditure if the entity has related-party debt involving a non-resident lender that is not taxable in New Zealand on the interest payments.

Clause 82 amends section FM 8 to update the defined term used in referring to transfers of value by a company.

Clause 83 amends section GB 27 to ensure that, when a company that is required to attribute income from personal services to another person pays a dividend to that other person, the dividend is only exempt from income tax if it is paid out of income that has already been attributed to that other person.

Clause 84 amends section GB 29, which relates to the calculation of attributed income from personal services, to clarify that, in calculating the associated entity’s net income for the purpose of determining how much income is to be attributed to another person, the deduction allowed to the associated entity for an amount attributed under the attribution rule for income from personal services is ignored.

Clause 85 amends section GC 10 to remediate inconsistent linkages between paragraphs.

Clause 86 amends section HA 13 to update the defined term used in referring to transfers of value by a company.

Clause 87 amends section HC 2 to clarify the rule determining the country of residence for joint trustees of a trust.

Clause 88 amends section HC 4 to clarify that property contributing to value of the corpus of a trust must be capable of being distributed and that each settlement of property on a trust is valued as at the time of the settlement.

Clause 89 amends section HC 7 so that the amount of trustee income from a settlement of property is reduced by any amount of the settlement that the trustee treats as beneficiary income or as a taxable distribution.

Clause 90 amends section HC 10 so that a trust for which an election is made is treated as having always been a complying trust if the tax obligations of the trustee, treated as the trustee of a complying trust, have been satisfied for the life of the trust up to the time of the election. If those tax obligations have not been satisfied, the trust is treated as being a complying trust from the time that the election applies to the trust.

Clause 91 amends section HC 15 to provide a rule for determining the source of a taxable distribution arising from a capital gain of a non-complying trust or foreign trust.

Clause 92 amends section HC 16, to clarify the ordering of the elements of a distribution in an income year by a trustee of a non-complying trust or foreign trust. A new first element of the distribution is inserted, referring to beneficiary income of the beneficiary that was derived by the trustee in earlier income years and not previously distributed.

Clause 93 amends section HC 26(1), which relates to foreign-sourced amounts. Subclause (1) excludes beneficiary income from amounts derived by a trustee that are exempt income. Subclause (2) provides for the situation in which a trust has no surviving settlors. Subclauses (3) and (4) provide that an amount of beneficiary income held by the trustee for a minor beneficiary is not exempt income for the trustee.

Clause 94 amends section HC 27(4) so that an indirect settlement may occur when a transaction that is part of a transfer of value involves a person who is associated with the person making the transfer of value.

Clause 95 amends section HC 28 to provide that, when a CFC settles an amount on a trust, the control interest in the CFC of a person may be taken over the accounting period in which the settlement is made.

Clause 96 inserts new section HC 31B, which provides a method for quantifying a transfer of value that occurs when a person who provides financial assistance to a debtor forgives an obligation of the debtor, or a guarantor, or does not enforce an obligation of the debtor or guarantor.

Clause 97 amends section HC 33, which relates to elections that trusts be treated as complying trusts although the requirements relating to settlors of the trust have ceased to be met. Subclause (2) varies the requirement in subsection (1B) that a trustee indicate in a return of income that the trust is a complying trust. Consequently, a trustee who does not have to provide a tax return for a trust is not excluded from meeting the requirements under the subsection. Subclause (3) inserts a new subsection (1C), which restates some of the contents of current subsection (2)(a) and gives the basis on which the tax obligations arising from the trust are determined after an election. Subclause (4) replaces current subsection (2)(a) to remove the overlap with new subsection (1C). Subclause (5) replaces section HC 33(3)(a) and (b) with new paragraphs (a) to (c), which give the date from which an election applies for each of the 3 possible ways in which an election may be made. Subclause (6) inserts new subsection (3B), which expressly provides for the end of the application period for an election meeting the requirements of subsection (1B). Subclause (7) amends subsection (4) to provide for the notice of an election by a trustee who is not required to make a tax return for the trust. Subclause (8) inserts new subsection (5) giving, for a trust for which an election is made, the treatment of distributions in terms of the status of the trust when the trustee derives the income that is distributed.

Clause 98 amends section HM 3 to remedy a broken linkage between paragraphs.

Clause 99 amends section HM 60 to enable the Commissioner to notify a multi-rate PIE in relation to an investor who is on the 28% tax rate by default but appears to be entitled to have a lower rate of tax applied.

Clause 100 amends section IQ 4 to remediate an inconsistent linkage between paragraphs.

Clause 101 amends section LA 5 to increase the refundability of research and development tax credits subject to a payroll tax-based cap. The cap does not apply to levy bodies, or to research and development tax credits arising from eligible expenditure on approved research providers.

Clause 102 amends section LD 6 to make an addition to the list of defined terms used in the section.

Clause 103 amends section LJ 2, which relates to tax credits for foreign income tax, to clarify that, when an entity attributes foreign-sourced income to another person under the attribution rule for income from personal services, that other person gets a tax credit and the entity does not.

Clause 104 amends section LO 2 so that all distributions to a beneficiary of a trust are included in the calculation of the person’s tax credit for Maori authority credits.

Clause 105 amends section LY 1 to correct a minor fault of expression.

Clause 106 amends section LY 3 to correct a minor fault of expression, and to ensure that tax exempts can generally not claim research and development tax credits.

Clause 107 amends section LY 8 to ensure that tax exempts can generally not carry forward research and development tax credits.

Clause 108 amends section OK 19 to restrict the ability of a Maori authority to retrospectively attach Maori authority credits to distributions. The credits may be attached retrospectively if the amounts payable or receivable under a transfer pricing arrangement are adjusted retrospectively.

Clause 109 amends section RC 5 to ensure the correct amounts are used to calculate use of money interest and penalties for provisional tax.

Clause 110 amends section RC 10 to allow a standard method taxpayer to estimate their last instalment.

Clause 111 amends section RD 5 to correct a fault of expression.

Clause 112 amends section RZ 16 to clarify a legislative reference.

Clause 113 amends section YA 1. Subclause (2) inserts a new definition of air transport to New Zealand, which is used in the exempt income rule for non-resident aircraft operators. Subclause (3) amends the definition of deductible output tax to remediate an inconsistent linkage between paragraphs. Subclause (4) amends the definition of employee to remedy a missing linkage between paragraphs. Subclause (5) amends the definition of internal software development expenditure as part of ensuring that the cap on internal software development expenditure encompasses all relevant eligible internal software development. Subclause (6) inserts a definition of levy body researcher as part of ensuring that tax exempts can generally not claim research and development tax credits. Subclauses (7) and (8) amend the definition of market value as part of allowing methodologies for employee share schemes and exempt ESSs in terms of volume weighted average prices for listed shares and options. Subclause (9) repeals the definition of non-business researcher as part of ensuring that tax exempts can generally not claim research and development tax credits. Subclause (10) inserts a new definition of payroll tax-based cap. Subclause (11) amends the definition of premium to correct an inconsistent linkage between subparagraphs. Subclause (12) amends the definition of RWT proxy to correct a cross-reference. Subclause (13) amends the definition of research and development contractor as a consequential matter. Subclause (14) amends the definition of services to update the defined term used in referring to transfers of value by a company. Subclause (15) amends the definition of services to correct a cross-reference. Subclause (16) inserts a new definition of transfer of company value, which reflects the meaning of the term transfer of value that is currently used in provisions applying to distributions by companies. Subclause (17) consequentially repeals paragraph (a) of the definition of transfer of value. Subclause (18) amends paragraph (b) of the definition of transfer of value so that the term includes money’s worth that is not convertible into money. Subclauses (19) and (20) amend the definition of trust rules by inserting new cross-references. Subclause (21) gives the application for the backdated minor amendment in subclause (11). Subclause (22) gives the application for the amendment made by subclause (15).

Clause 114 amends schedule 32 to insert entities into the list of recipients of charitable or other public benefit gifts.

Clause 115 sets out the clauses that amend the Tax Administration Act 1994.

Clause 116 amends section 22 to correct a cross-reference.

Clause 117 amends section 36BB to update cross-references.

Clause 118 amends section 78D as a minor drafting remedial matter.

Clause 119 amends section 91EI to specify the period for which a taxpayer can continue to rely on a private ruling that does not relate to an arrangement if the ruling is withdrawn.

Clause 120 inserts new section 91ESB to allow the Commissioner to withdraw short-process rulings.

Clause 121 amends section 91FJ to specify the period for which taxpayers can continue to rely on a product ruling that does not relate to an arrangement if the ruling is withdrawn.

Clause 122 amends section 108 to clarify the timebar for amending assessments in relation to research and development tax credits.

Clause 123 amends section 113E to clarify the timelines for amending assessments in relation to research and development tax credits.

Clause 124 amends section 120KB to clarify the relationship between current year RIT and the calculation in section RC 10.

Clause 125 amends section 120KBB to correct faults of expression and clarify the calculation of interest for final instalments of provisional tax.

Clause 126 amends section 120L to remove taxpayers’ ability to allocate tax payments to particular provisional tax instalments.

Clause 127 amends section 124ZI to clarify the criteria for research and development certifiers.

Clause 128 amends 138E to correct a cross-reference to prevent a taxpayer from challenging the Commissioner’s decision in relation to the in-year approval pilot and exceeding the $120 million expenditure cap.

Clause 129 amends 139B to correct a minor fault of expression.

Clause 130 amends 139C to clarify the amount of provisional tax final instalments for late payment penalty purposes.

Clause 131 amends 173L to clarify the date on which a goods and services tax credit becomes available.

Clause 132 amends schedule 4 to add 2 items of information related to KiwiSaver that employers may be required to provide to the Commissioner as part of their employment income information.

Clause 134 amends schedule 7 to permit the Commissioner to disclose information about representatives to their industry bodies.

Clause 135 amends schedule 8 to correct a fault of expression.

Clause 136 sets out the clauses that amend the Income Tax Act 2004.

Clause 137 amends section CW 45 to ensure that income derived by non-resident aircraft operators, covered by a determination by the Commissioner, from air transport to New Zealand is exempt from New Zealand income tax.

Clause 138 amends section MD 1C to clarify a legislative reference.

Clause 139 amends section OB 1 to insert a new definition of air transport to New Zealand, which is used in the exempt income rule for non-resident aircraft operators.

Clause 140 sets out the clauses that amend the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019.

Clause 141 repeals section 34 as a minor drafting remedial matter.

Clause 142 amends section 375 to delete an incorrect legislative reference.

Clause 143 amends section CB 14 of the Income Tax Act 1994 to ensure that income derived by non-resident aircraft operators, covered by a determination by the Commissioner, from air transport to New Zealand is exempt from New Zealand income tax.

Clause 144 amends section 64A of the Income Tax Act 1976 to ensure that income derived by non-resident aircraft operators, covered by a determination by the Commissioner, from air transport to New Zealand is exempt from New Zealand income tax.

Clause 145 repeals section 46(2) of the Taxation (Research and Development Tax Credits) Act 2019 as a minor consequential matter.

Clause 146 repeals section 332 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 as a minor drafting remedial matter.

Clause 147 amends section 11(1)(cb) of the Accident Compensation Act 2001 as a minor consequential matter.

Clause 148 revokes the Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulations 1995, as a consequence of the repeal of the adverse events income equalisation scheme.