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01 Jun 1965

Land and Income Tax Amendment Act (No. 2) 1965

Archived legislative commentary on the Land and Income Tax Amendment Act (No. 2) 1965 from PIB vol 23 Jun 1965.

This commentary item was published in Public Information Bulletin Volume 23, June 1965.

More information about Public Information Bulletins.


Section 2 - Except where stated this Act applies to tax on income for the year that commenced on 1 April 1965 and in future.

More power for appeal authorities

Section 3 - Amends sections 31 and 32 of the principal Act to allow the Board of Review or the Supreme Court to

  • Vary an assessment to conform with its determination.
  • Make assessments or direct the Commissioner to make assessments to conform with its determination.

There have been doubts whether the 4 year time limit for increasing assessments applies to assessments made to conform with a determination of the Board or the Court.

This section makes it clear that the time limit in section 24 of the principal Act is not to apply.

Special exemption for absentee pensioners

Section 4 - This section restores the personal exemption for absentees who get pensions from New Zealand. The exemption will be the smaller of:

  • The amount of the pension,

  • The personal exemption of £468.

The section is also linked with the existing legislation which allows a personal exemption when an absentee comes to New Zealand and earns income from working here.

The maximum exemption under the two limbs is £468.

Changed references

Section 5 - Changes references to the "Consolidated Revenue Account" in sections 81 and 82 of the principal Act to "Part I of the Social Security Act 1964".

The previous reference had become obsolete.

Armed Forces gratuities

Section 6 - Rectifies inconsistencies in the tax treatment of gratuities paid to the Territorial members of the Armed Forces.

These gratuities, up to an amount of £60, are to be exempt from tax in all cases when the period of service ends on or after 1 November 1965.

Section 7 - Makes it clear that gratuities payable to members of the Regular Force on completion of their period of service are and will continue to be taxable in full.

Consequential amendment

Section 8 - is a consequential amendment.

Depreciation on tractor safety frames

Section 9 - inserts a new section 113C into the principal Act.

Section 113C provides for a deduction in one year of 100% of the cost price, including costs of attaching, of approved safety frames to tractors, provided the safety frame is acquired after 31 December 1965.

The deduction is available to all taxpayers carrying on business in New Zealand provided the tractor is used solely for business purposes.

Additional depreciation on capital improvements to export slaughterhouses

Section 10 - Extends to 31 March 1968 the period allowed to freezing companies and similar exporters in which to complete capital expenditure on slaughterhouses and meat packing-houses which qualify for a special depreciation allowance.

Increased exports

Section 11 - Clarifies the increased exports incentive legislation. It gives the Commissioner power to adjust the average sales in the base period so that the incentive deduction is for actual increases in export goods from New Zealand.

Repeal of Section 144

Section 12 - Provides an application date for the repeal of section 144 of the principal Act and restricts payments under the repealed section to cases when written application was received before 1 April 1965.

More information

If you want more information on any particular section please get in touch with the nearest tax office. The tax office will also supply, on request, a copy of the working notes issued to the staff. These notes, with examples, give more detailed information of the No. 2 Amendment Act.