The Government has revealed its final plans for tax cuts, with average-income households getting a cut of $102 per fortnight under the revised brackets.
The changes have been long-awaited after National promised to introduce them in the election campaign last year.
Finance Minister Nicola Willis unveiled the final confirmed changes as part of the Government's Budget 2024 earlier today.
Part of her announcement included the release of a new tax calculator, which allows Kiwis to find out how much they will receive extra as a result of the revised tax brackets.
Willis said it meant New Zealanders would get their first tax cuts in 14 years, something she said was “well overdue” and would help hardworking people.
Find out if you will receive a tax cut and by how much at this link: https://budget.govt.nz/taxcalculator/index.htm
How much a person receives from the tax changes will be different depending on their income and circumstances.
- A minimum wage earner would be better off by around $12.50 a week
- A single adult earning $55,000 a year will be better off by about $25.50 a week
- A sole parent with two teen kids will be better off by around $45 a week
- A retired couple receiving superannuation with no other income will get $4.50 a week, rising to $13 a week.
Nicola Willis said the change would help Kiwis doing it tough, speaking to Parliament.
She said most of the money used to help give people tax cuts came from "savings" or a reduction in spending on some government activities.
"Tax relief in this Budget puts $3.7 billion a year back into the pockets of New Zealanders. This tax relief is fully funded. Some of the funding is from revenue measures, but mostly it comes from savings," Willis said.
The Finance Minister said: "This Budget is for everyday people getting on with their lives – the Mums and Dads rushing the kids to kōhanga, working hard, waiting in traffic and watching the petrol light flash again.
"This Budget is for the people whose doors I knocked on in the election campaign, who said $20 a week would be the difference between staying on top of the bills and being in overdraft.
"It’s for the man who told me he picked up a second job driving an Uber to pay the rent. It’s for every New Zealander, from every walk of life, who gives their best and wants a fair deal in return.
"This is a Budget for the squeezed middle of New Zealand – the shift-workers, the people working two jobs, the families making sacrifices for their kids."
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