NEWS

Who doesn’t love a bit more of their earnings in their pocket? The New Zealand government has recently announced tax relief measures in the 2024 budget, aimed at providing financial relief to households and individuals.

 

Key Highlights:

1. Income Tax Thresholds:

The income tax thresholds have been adjusted to reduce income tax for people earning more than $14,000 per annum. This marks the first reduction in personal income tax rates since 2010.

Here are the new income tax brackets:

• Up to $15,600: 10.5%
• $15,601 - $53,500: 17.5%
• $53,501 - $78,100: 30%
• $78,101 - $180,000: 33%
• $180,001 and above: No change (remains at 39%)

 

2. Independent Earner Tax Credit:

The income limit for the independent earner tax credit has been extended to $70,000 per annum. This means an additional 420,000 people (not receiving Working for Families, main benefits, or Superannuation) are now eligible for up to $20 per fortnight.

 

3. In-Work Tax Credit:

An estimated 160,000 low-to-middle-income working families will receive up to an extra $50 per fortnight through the increased in-work tax credit.

 

4. FamilyBoost Payment:

The new FamilyBoost payment aims to assist approximately 100,000 families with the costs of early childhood education. Eligible families can receive up to $150 per fortnight.

 

5. Effective Dates:

The tax changes apply from 31 July 2024, except for the FamilyBoost payment, which applies from 1 July 2024.

 

Impact on Households:

• Households with children will benefit by an average of $78 per fortnight.
• Overall, approximately 1.9 million households will see an average benefit of $60 per fortnight.

 

Disclaimer

This information is intended to provide general advice only. We recommend you discuss your specific situation with your Accountant.