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Personal Tax Cuts - Fact Sheet

The government is introducing personal tax cuts starting from 1 October 2010.
These changes will result in the following personal tax rates (changes in bold):

Current Tax Rates

$0 - $14,000 12.5%
$14,000 - $48,000 21%
$48,001 - $70,000 33%
$70,001 + 38%

From 1 October 2010

$0 - $14,000 10.5%
$14,001 - $48,000 17.5%
$48,001 - $70,000 30%
$70,001 + 33%

Independent earner tax credit (IETC)

The independent earner tax credit (IETC) will provide tax relief to middle-income New Zealanders who do not receive core assistance from the government.

The IETC will, from 1 April 2009, deliver $10 per week to individuals who earn between $24,000 and $44,000 and who do not receive a benefit, Working for Families tax credits or New Zealand superannuation. The IETC will be abated at 13 cents for every dollar of income earned over $44,000. The amount of the IETC will increase to $15 per week from 1 April 2010.