Politics

Bill to provide quake tax relief passed

20:57 pm on 20 May 2011

Parliament has passed legislation giving some tax relief to people affected by the Canterbury earthquakes.

The Taxation (Canterbury Earthquake Measures) Bill provides a range of tax exemptions to employers, employees and businesses on donations of cash, goods and accommodation.

It also extends tax credits to people made redundant as a result of the devastating quakes in September last year and February.

The bill was passed unanimously in urgency on Friday night.

Earlier, Parliament passed cuts announced in Thursday's Budget to KiwiSaver and Working For Families under urgency.

Government contributions to KiwiSaver will be halved and employer contributions will no longer be tax-free.

Working for Families tax credits will also be reduced for thousands of families.

The vote was 67 to 51 in favour of that bill, with ACT, the Maori Party and United Future supporting National.

The Government says the changes will not take effect until after the general election on 26 November to give the public the chance to show its support - or otherwise - for the reforms.