A further measure aimed at removing a distortion is a proposal to zero rate the domestic leg of cross-border transportation of goods. Currently, the transportation of goods to and from New Zealand is zero rated, as is the transport of goods within New Zealand, provided this is part of the international transport of goods and done by the same supplier. The bill expands the zero rating to accommodate subcontracting arrangements for transport within New Zealand. This levels the playing field and removes incentives to pick one transport carrier over another. This change will broadly align New Zealand rules with those of Australia.