Revenue Minister Simon Watts introduces new tax bill, says it will make living and working easier for digital nomads and new migrants

Revenue Minister Simon Watts has introduced a new tax bill which he says will make it easier for digital nomads to stay longer in New Zealand and for new migrants to live and work here.

Watts introduced the Taxation (Annual Rates for 2025-2026, Compliance Simplification, and Remedial Measures) Bill on Tuesday.

“Currently, new migrants are taxed on estimated overseas income, even if they don’t actually receive it. The new law will change that, so they are only taxed on money they actually earn,” Watts says.

“This makes it fairer and more attractive for skilled migrants to move here, and helps keep talented New Zealanders from leaving.”

As well as this, changes for overseas visitors working remotely in New Zealand means they could stay longer in the country before being taxed.

Watts says this will encourage them to spend more money while they're here.

The bill also aims to fix tax timing issues with employee share schemes and reduce “unnecessary” tax compliant costs.

Examples the Government is using are: 

• Joint ventures: Current GST practices will be recognised instead of forcing businesses through costly changes.
• Residential solar power: People who export excess power back to the grid won’t face income tax, recognising that the compliance burden would outweigh any benefit and to encourage greater solar and battery uptake.

“This Government’s top priority is growing the economy so we can deliver more jobs, higher wages, and lower costs for New Zealanders,” Watts says.

“One way to do that is by making New Zealand a place where talented people and investors want to stay and build their futures.”

“These practical changes make the tax system simpler and more effective. They remove barriers that hold back investment and growth,” Watts says.