Reprint
as at 4 September 2008

Income Tax (Payroll Subsidy) Regulations 2006

(SR 2006/159)
Dame Sian Elias, Administrator of the Government

Order in Council

At Wellington this 19th day of June 2006
Present:The Hon Dr Michael Cullen presiding in Council

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.
The Income Tax (Payroll Subsidy) Regulations 2006 is administered by the Inland Revenue Department.

Pursuant to section NBB 6(6) of the Income Tax Act 2004, Her Excellency the Administrator of the Government, acting on the advice and with the consent of the Executive Council, makes the following regulations.

Contents

1 Title
2 Commencement
3 Interpretation
4 Amount of payroll subsidy

Regulations

1 Title

These regulations are the Income Tax (Payroll Subsidy) Regulations 2006.

2 Commencement

These regulations come into force on 1 October 2006.

3 Interpretation

In these regulations, unless the context otherwise requires,—
arrangement means an arrangement under subpart NBA of Part N of the Income Tax Act 2004
source deduction payment, in relation to an employee, has the meaning given to it by section OB 2 of the Income Tax Act 2004.

4 Amount of payroll subsidy

The amount of the subsidy to be paid to a listed PAYE intermediary under section NBB 6 of the Income Tax Act 2004 in respect of each employer who contracts the services of the listed PAYE intermediary must be calculated using the following formula:

a = $2 × b × c
where—

ais the amount of the subsidy to be paid to the listed PAYE intermediary in respect of each employer who, in the period for which the subsidy is claimed, contracts the services of the listed PAYE intermediary
bis the number of employees of the employer to whom the arrangement with the listed PAYE intermediary applies in the period for which the subsidy is claimed or, if there are more than 5, up to a maximum of 5 of those employees who are nominated by the listed PAYE intermediary
cis the number of source deduction payments made in the period for which the subsidy is claimed in respect of the employees who make up the number of employees referred to in item b.

Diane Morcom,Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 October 2006, provide for the calculation of the payroll subsidy to be paid to listed PAYE intermediaries under section NBB 6 of the Income Tax Act 2004. Subpart NBB of the Act prescribes the requirements that must be met before the subsidy is payable, for example, the employer must be one to whom section NC 15(1)(c) or (d) applies and the PAYE intermediary must meet certain obligations.

Issued under the authority of the Acts and Regulations Publication Act 1989.
Date of notification in Gazette: 22 June 2006.

Contents

1General
2Status of reprints
3How reprints are prepared
4Changes made under section 17C of the Acts and Regulations Publication Act 1989
5List of amendments incorporated in this reprint (most recent first)

Notes

1 General

This is a reprint of the Income Tax (Payroll Subsidy) Regulations 2006. The reprint incorporates all the amendments to the Income Tax (Payroll Subsidy) Regulations 2006 as at 4 September 2008, as specified in the list of amendments at the end of these notes.
Relevant provisions of any amending enactments that have yet to come into force or that contain relevant transitional or savings provisions are also included, after the principal enactment, in chronological order.

2 Status of reprints

Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.
This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared

A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/legislation/reprints.shtml or Part 8 of the Tables of Acts and Ordinances and Statutory Regulations, and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989

Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.
A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.
In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

•omission of unnecessary referential words (such as “of this section” and “of this Act”)
•typeface and type size (Times Roman, generally in 11.5 point)

•layout of provisions, including:

•indentation
•position of section headings (eg, the number and heading now appear above the section)

•format of definitions (eg, the defined term now appears in bold type, without quotation marks)
•format of dates (eg, a date formerly expressed as “the 1st day of January 1999” is now expressed as “1 January 1999”)
•position of the date of assent (it now appears on the front page of each Act)
•punctuation (eg, colons are not used after definitions)
•Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

•case and appearance of letters and words, including:

•format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)
•small capital letters in section and subsection references are now capital letters

•schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly
•running heads (the information that appears at the top of each page)
•format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)