Proposed 👀 Watch Rate change

New Zealand bill proposes to zero-rate residential electricity sold to retailers from 1 April 2027

This change is proposed and is not law. The rules below describe what would change if it is adopted.

Jurisdiction
New Zealand
Tax
GST
Change type
Rate change
Status
Proposed
Impact
Watch
Announced
10 September 2026
Effective
1 April 2027
Authority
Inland Revenue (Tax Policy), New Zealand
Systems
Invoicing, Tax engine, Reporting
Verified
Fetched from official source · high confidence
Who this affects

Households and others generating electricity at residential premises and selling it to electricity retailers.

What to do

No action yet - monitor passage; electricity retailers and residential solar exporters to plan for zero-rating of excess-electricity supplies from 1 April 2027 if enacted.

InvoicingTax engineReporting

The change

The Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill, introduced on 10 September 2026 and at first reading as at 15 September 2026, proposes (clause 151) to zero-rate supplies of electricity generated at residential premises and sold to electricity retailers, from 1 April 2027. The Bill is not yet law and the clause may be amended in passage.

What changed in detail

This is a bill and not law. The Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill was introduced on 10 September 2026 and was at first reading as at 15 September 2026. Clause 151 proposes to zero-rate supplies of electricity generated at residential premises and sold to electricity retailers.

The proposed amendment would take effect on 1 April 2027. The clause may be amended in passage.

What it means

The proposal targets sales of home-generated electricity, such as solar exports, to retailers. It is only a proposal, so no change to registration, pricing or billing should be made on it before the Bill is enacted. Anyone selling to a retailer should watch the select committee stage for changes to clause 151.

Proof

This proposal would zero-rate supplies of electricity generated at residential premises and sold to electricity retailers.
Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill - Bill commentary — Inland Revenue (Tax Policy) · captured 5 October 2026
Screenshot of Inland Revenue (Tax Policy) captured 5 October 2026, showing the quoted passage Source snapshot of the official page. Open full size ↗

Sources

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