Source: New Zealand Government
The Government has delivered on its promise to New Zealanders with tax relief for hardworking Kiwis in effect from today, Finance Minister Nicola Willis says.
“I am thrilled to have delivered on our promise to Kiwi families who can keep more of their hard-earned money to put towards things that are important to them – their children, their weekly shop, paying their power bill,” Nicola Willis says.
“Overall, 83 per cent of Kiwis – 94 per cent of households – will benefit from our tax package.
“On top of the tax changes, the new FamilyBoost payment, which reimburses families for a portion of their early childhood education fees, up to $150 a fortnight, was launched on 1 July. Families with children in ECE can find out if they are eligible at IRD.govt.nz.
“I encourage everyone who hasn’t already done so – and over 560,000 people already have – to go to budget.govt.nz/taxcalculator and check out the tax calculator to find out how much tax relief they will get, based on their personal and family circumstances,” Nicola Willis says.
From today personal income tax thresholds will rise from $14,000 to $15,600; from $48,000 to $53,500; and from $70,000 to $78,100.
In addition, the in-work tax credit – which helps support low-to-middle income working families with children – has increased by up to $50 a fortnight.
And 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.
“727,000 households will benefit by at least $75 a fortnight, and 187,000 will benefit by at least $100 a fortnight. On average, households will benefit by $60 a fortnight, and households with children by $78 a fortnight.
“That’s real and meaningful cost of living relief. Every little bit counts right now and my message to Kiwi families doing it tough is that this government has got your back,” Nicola Willis says.
