Inland Revenue seeks public feedback to modernize Fringe Benefit Tax rules.
The New Zealand government has launched a public consultation on proposals to simplify the Fringe Benefit Tax (FBT) rules and reduce compliance costs for taxpayers. According to Revenue Minister Simon Watts, the aim is to enhance the integrity of the tax system while maintaining a fiscally neutral approach. The consultation focuses on motor vehicles and other small benefits, aiming to ease the compliance cost burden.
The proposals have been developed in collaboration with private sector experts. A key change being considered is adopting a 'close enough is good enough' approach for FBT reporting, which could significantly reduce compliance costs. Inland Revenue has already incorporated feedback from small businesses into the consultation document.
The consultation is open until May 5 and can be accessed at https://www.taxpolicy.ird.govt.nz/consultation/2025/fbt-options-for-change. The proposed changes aim to modernize a system that has remained largely unchanged since its introduction 40 years ago, with only minor adjustments made in the past.