Wellington, July 20 NZPA - A bill to require future Governors-General to pay tax passed its first reading in Parliament today.

Prime Minister John Key said the bill updated language and also removed outdated measures -- many which arose because the Governor-General was previously from England. The bill followed a Law Commission review which found the Governor-General provisions in the Civil List Act were old-fashioned, unnecessarily complicated, and no longer suited to supporting the office of a modern Governor-General.

The recommendations would be implemented in time for the next Governor-General to assume office in August last year.

Changes would remove:

* the Governor-General's salary income tax exemption;

* the Finance Minister's power to exempt the Governor-General from paying any public or local taxes and other rates and duties;

* some restrictions on the availability of the annuity paid to former Governors-General and their surviving spouses or partners.

The annuity recognised the role the Governor-General's spouse or partner played and would not continue to be available if a surviving spouse or partner remarried or entered a new relationship, or if a former Governor-General and surviving spouse or partner chose to live overseas.

Some benefits would be carried over such benefits as domestic travel and the use of chauffeur-driven cars -- similar to benefits former prime ministers get, recognising public demands can continue after the person leaves office.

The bill would also create a new funding structure for the Office of Governor-General.