Australia signs tax treaty with NZ

Australia has signed a new tax treaty with New Zealand that will help support
business, investors and pensioners, the federal government says.
The new treaty replaces tax rules that have been in place since 1995 and amendments
made in 2005.
"New Zealand is a country with which Australia shares an exceptionally close trade
and investment relationship," Assistant Treasurer Senator Nick Sherry said on
Monday.
"The changes made by the new treaty to update the taxation arrangements between the
countries will be of benefit to both the Australian and New Zealand economies."
The new treaty includes the reduction of withholding tax rate limits on certain
dividends, and on certain classes of interest and royalty payments, reducing the
cost to Australian business.
It will also assist the Australian managed fund industry by providing rules to allow
trusts to access benefits on income derived from New Zealand.
Additionally, the treaty encourages greater mobility of labour by removing
impediments to work and accumulating superannuation benefits in both countries.
Trade Minister Simon Crean signed the new treaty in Paris last Friday.
"Australia and New Zealand continue to strengthen their economic links and move
towards an integrated trans-Tasman economy under the Closer Economic Relations trade
agreement and the Single Economic Market initiative," Mr Crean said in the joint
statement.
"This treaty represents an important further step in those endeavours."