Legal and regulatory update for the life and health sector
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Legal and regulatory update for the life and health insurance sector

2 Dec 2020 – IRD advised that the Minister of Revenue David Parker introduced the Taxation (Income Tax Rate and Other Amendments) Bill into Parliament on 1 Dec 2020. Parliament agreed to accord the Bill urgency. The Bill contains four main measures:

  • introducing a new top personal income tax rate of 39%
  • introducing increased disclosure requirements for trusts
  • increasing the Minimum Family Tax Credit threshold for the 2020–21 tax year, and
  • clarifying more generally that Inland Revenue can request information solely for tax policy development purposes.

All parliamentary stages, including the Third Reading, were completed on 2 Dec 2020. https://taxpolicy.ird.govt.nz/news/2020/2020-12-02-introduction-taxation-income-tax-rate-other-amendments-bill

2 Dec 2020 – Financial Services Council released the third and final part in its Money and You research series - ‘Breaking through the Advice Barrier’ - focused on what is stopping people from getting financial advice, and why it’s important that more New Zealanders have access to it. https://www.fsc.org.nz/bulletin_display/x_blog_code/2121.html

2 Dec 2020 – Good Returns story on an Australian report released by Key Person Risk Management on the potential costs and implications for the life insurance industry of removing commissions and replacing them with a fee for service basis. https://www.goodreturns.co.nz/article/976517905/australian-report-raises-alarm-over-life-insurance-s-future.html

3 Dec 2020 – Department of Internal Affairs issued an AML/CFT update on expiring regulations timeframe and the impact on independent audit obligations. The Ministry of Justice has advised that the timeframes for amending these regulations has changed and the Ministry now aims to have new regulations in force by July 2021. Note the resultant impact on timeframes for reporting entities with an independent audit due prior to July 2021. https://www.dia.govt.nz/AML-CFT-Update-to-expiring-regulations-timeframe

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