The Taxation (Consequential Rate Alignment and Remedial Matters) Bill, introduced in July 2009, received Royal Assent on 7 December 2009.
The new legislation contains amendments to resident withholding tax rates on interest, tax rates on portfolio investment entities (PIEs) and retirement scheme contribution tax rates. The legislation also introduces a new 12.5% secondary tax code and a 12.5% tax rate for extra pays. Of particular note, are changes to the timing of beneficiary income and the correcting of errors in subsequent returns. Beneficiary income can now be paid up until the date the trust’s tax return is required to be filed, and errors of $500 or less in GST, FBT or income tax returns can be corrected in the following returns.