Tax relief is fully funded
Tax relief in Budget 2024 puts $3.7 billion a year back into the pockets of New Zealanders. Tax relief is fully funded from savings and revenue initiatives, so the Government is not borrowing to fund this tax relief and it won't add to inflation.
| Budget 2024 tax package | Annual average cost/(saving) $billion |
|---|---|
| Tax relief | |
| Personal income tax thresholds and independent earner tax credit | 2.57 |
| In-work tax credit increase | 0.15 |
| FamilyBoost payment for early childhood education costs | 0.18 |
| Restoring interest deductibility for residential rental property | 0.73 |
| Brightline test adjustment | 0.05 |
| Total | 3.68 |
| Savings and revenue to fund tax relief | |
| Baseline savings not reprioritised to frontline agencies | (1.22) |
| Closing Labour programmes* | (0.78) |
| Climate dividend* | (0.60) |
| Commercial buildings depreciation | (0.58) |
| Taxing online casino operators | (0.05) |
| Revenue from immigration levies | (0.13) |
| Fees Free - replacing first-year with final‑year fees free | (0.22) |
| Investment in tax compliance activities | (0.15) |
| Total | (3.71) |
* Through both mini-Budget and Budget 2024.
Note the savings and revenue components do not sum to this total due to rounding.