17 Aug 2011

Legislation to abolish gift duty passes

10:45 pm on 17 August 2011

Legislation that abolishes gift duty has passed its third reading in Parliament.

The Taxation Tax Administration and Remedial Matters Bill was debated under urgency, with MPs passing it with 66 votes to 54.

The legislation is to replace a 115 year-old-law that restricts gifts, mainly to trusts, to $27,000 a year.

At the moment, people are required to pay tax on gifts with a combined value of more than $27,000 a year.

Revenue Minister Peter Dunne says the legislation will take effect in October.