22 Dec 2009

Call for next Governor-General's salary to be taxed

3:54 pm on 22 December 2009

The Law Commission says the next Governor-General's salary should be taxed. His salary and allowance are presently exempt from income tax under the 2007 Income Tax Act.

The recommendation is included in a Law Commission report on the Civil List Act, which has been tabled in Parliament.

The report says the Queen has voluntarily paid income tax on her private income since 1993.

The Australian government introduced legislation in 2001 to remove income tax exemptions on salary enjoyed by the Governor-General and the State Governors.

The Law Commission president, Sir Geoffrey Palmer, says there is no longer any justification for such an exemption in New Zealand.

The Remuneration Authority has set the Governor-General's salary at the rate of $191,645 per year.

However, the commission says the changes proposed in the report will not affect the current Governor-General, Sir Anand Satyanand, as the bill attached to the report would need to be passed by Parliament.

The new tax requirement would not apply to expenses.