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New Zealand: “Bumper bill” advances 2026 budget reforms

Broad package of proposed tax changes, including many measures announced as part of 2026 budget

September 22, 2026

The Taxation (Annual Rates for 2026–27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill—a broad package of proposed tax changes, including many measures announced as part of the 2026 budget—was referred to the Finance and Expenditure Select Committee for public submissions.

Key changes proposed in the bill include:

  • New “permitted use” category approach to fringe benefit tax (FBT) compliance obligations for employers providing motor vehicles
  • Simplifications to nonresident contractors' tax (NRCT) regime
  • Research and development (R&D) tax incentive changes, including new rules for software investment
  • Foreign investment fund (FIF) reforms
  • Reduced taxation of unrealized foreign-currency movements

Read a September 2026 report prepared by the KPMG member firm in New Zealand

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