Tax at a Glance
The Government is delivering on its commitment to tax relief
- Tax relief in Budget 2024 will let hard-working New Zealanders keep more of what they earn.
- 83 per cent of New Zealanders will benefit from tax relief to help ease the cost of living.
What is changing?
The Government is increasing personal income tax thresholds, expanding eligibility for the independent earner tax credit, increasing the in-work tax credit and introducing FamilyBoost.
Personal income tax thresholds have been increased to recognise that wage growth over time has pulled more people into higher tax brackets. Increasing the thresholds reduces income tax for people earning more than $14,000 per annum. It is the first reduction in personal income tax since 2010.
The upper limit of eligibility for the independent earner tax credit has been extended to recognise wage growth. This will help an estimated 420,000 additional people by up to $20 per fortnight.
It is important that low-to-middle-income working families get the support they need, so families receiving the in-work tax credit will get up to an extra $50 per fortnight, supporting an estimated 160,000 families.
The new FamilyBoost payment will help an estimated 100,000 families with young children meet the costs of early childhood education.
Who will benefit?
- Households with children, on average by $78 per fortnight.
- Around 1.9 million households, on average by $60 per fortnight.
- More than 3.5 million New Zealanders, on average by $32 per fortnight.
- All people receiving NZ Superannuation.
Notes:
Distributional impacts presented are based on tax year 2027.