Source: New Zealand Government
New Zealand’s payroll providers have successfully prepared to ensure 3.5 million individuals will, from Wednesday next week, be able to keep more of what they earn each pay, says Finance Minister Nicola Willis and Revenue Minister Simon Watts.
“The Government’s tax policy changes are legally effective from Wednesday. Delivering this tax relief to employees requires more than 242,000 employers and more than 120 payroll providers to be ready,” Nicola Willis says.
“Inland Revenue has ensured they know what to do and are ready to go. I’m advised by IRD that Digital Service Providers across New Zealand are well on track with development and testing of their changes in final stages.
“This means Kiwi workers can have confidence they will get the tax relief that is owed to them.
“IRD have worked with payroll providers, government agencies, large entities, tax intermediaries, and employer associations to ensure they have the relevant information to update their payroll systems in time.”
“More information about the changes and what employers need to do is available at ird.govt.nz,” Simon Watts says.
“We know Kiwis have been doing it tough, but cost of living relief is on its way. As well as the tax threshold changes, we’re also increasing the in-work tax credit – which helps support low-to-middle income working families with children – by up to $50 a fortnight.
“Alongside this, eligibility for the up to $20 per fortnight independent earner tax credit – which is for people who do not receive a benefit or Working for Families – has been extended to people earning up to $70,000 of income per year.”
“94 per cent of Kiwi households will be better off when our tax package comes into force next week. To find out how much you and your family will benefit, use the tax calculator at Budget.govt.nz,” Nicola Willis says.
