Tax News
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.