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01 Aug 1968

Estate and Gift Duties Act 1968

Archived legislative commentary on the Estate and Gift Duties Act 1968 from PIB vol 46 Aug 1968.

This commentary item was published in Public Information Bulletin Volume 46, August 1968

More information about Public Information Bulletins.

The Minister of Finance, the Hon RD Muldoon, introduced the Estate and Gift Duties Bill to the House on 4 July 1968.

The Statutes Revision Committee is now examining the Bill.

In general it follows the principles of existing legislation but has been arranged in a more logical order and written in simpler language. It is intended to apply from 1 January 1969.

The main changes proposed by the Bill are -


Dutiable Estate

Foreign realty is no longer excluded from the dutiable estate, but credit for overseas duty paid on the asset will be allowed up to the amount of the New Zealand duty.

A new method is provided for treating certain types of life insurance policies on deceased's life, where he disposed of the policy within three years of death.


Partnership interests and certain debts owing to deceased by relatives and controlled companies are to be valued in the manner set out in the Bill.

A new table for calculating the value of widowhood interests has been added to the Schedules of the Bill.


The time in which to pay estate duty without interest has been extended from four months to six months from date of death. The rate of interest is 5%.

Provision is made for relief in cases of hardship.


The order of the various allowances has been fixed. At present, the order in which allowances are granted can make a difference in the overall estate duty payable.

Allowances for estate duty paid outside New Zealand have been extended to cover all overseas duty. At present relief is given only from duty imposed by the country in which the assets are domiciled.

The quick succession allowance has been extended and simplified by basing the allowance on the total value of successions rather than individual assets.

A new method for making allowance for gift duty paid or payable on gifts included in the dutiable estate is set out in the Bill.

Notices to the Commissioner

Notice to the Commissioner of payments made to the estate of a deceased person without administration, does not have to be made unless the amount is $500 or more. At present, notice of all payments must be given.


Dutiable Girls

Gifts of foreign realty are to be liable to gift duty if the donor is domiciled in New Zealand.

Gifts made by a controlled company axe to be treated in a special manner.

The time in which to file a gift statement has been extended from one month to three months from date of gift.


The penalty on unpaid gift duty is reduced from 10% to 5%. It accrues six months from the date of gift. Interest on unpaid gift duty has also been introduced, applying three months from the date of gift at 5%.

A right of objection to the Commissioner against an assessment of either estate or gift duty has been provided. At present, the only right of objection is direct to a Court.

Change In Rates Of Gift Duty- Budget Proposals

The Minister of Finance announced changes in the rates of gift duty payable on gifts made on or after 19 July 1968 -

  • The amount which can be gifted without duty in any 12-month period has been increased from $2,000 to $4,000.
  • A new scale of rates has been introduced. The scale is set out below.
  • Where gifts made before 19 July 1968 aggregate with gifts made after the change gift duty on the earlier gifts will not be increased unless the value of the aggregated gift is more than $4,000.

Gift statements must still be filed where the value of gifts made in any 12-month period is more than $2,000.

Scale Of Rates For Gifts Made On Or After 19 July 1968

Value of Gift (Together with value of all Aggregated Gifts) Rate
NOTE - 'Excess' means excess of the value
Not exceeding $4,000 Nil
Exceeding Not Exceeding  
$4,000 $6,000 9% of excess over $4,000
$6,000 $8,000 $180 + 11% of excess over $6,000
$8,000 $10,000 $400 + 13% of excess over $8,000
$10,000 $12,000 $ 660 + 15% of excess over $10,000
$12,000 $14,000 $ 960 + 17% of excess over $12,000
$14,000 $16,000 $1,300 + 19% of excess over $14,000
$16,000 $18,000 $1,680 + 21% of excess over $16,000
$18,000 $20,000 $2,100 + 23% of excess over $18,000
$20,000 $22,000 $2,560 + 25% of excess over $20,000
$22,000 $24,000 $3,060 + 27% of excess over $22,000
$24,000 $28,000 $3,600 + 23% of excess over $24,000
$28,000 $32,000 $4,520 + 25% of excess over $28,000
$32,000 $36,000 $5,520 + 27% of excess over $32,000
$36,000 $40,000 $6,600 + 29% of excess over $36,000
$40,000 $44,000 $7,760 + 31% of excess over $40,000
$44,000 $48,000 $9,000 + 33% of excess over $44,000
$48,000 $52,000 $10,320 + 35% of excess over $48,000
$52,000 $56,000 $11,720 + 37% of excess over $52,000
$56,000 $60,000 $13,200 + 39% of excess over $56,000
$60,000 $64,000 $14,760 + 31% of excess over $60,000
Exceeding $64,000   25% of value of gift.