Taxes Cut Today

April 1, 2009 New Zealand Taxation  No comments

The National promised tax cuts came into effect on the 1st of April, 2009.

As of the first of April, 2009, a number of changes are taking place in the New Zealand taxation system both in regards to business and personal taxation.

To the everyday individual, most noticeable amongst these will be the introduction of the Independent Earners Tax Credit, which will deliver a net $520 ($10 per week) to those earning between $24,000 and $44,000. This decrease at 13 cents per dollar above the $44,000 bracket. Also, the 33% marginal taxation bracket begins from $48,000. The above $70,000 earnings bracket tax is decreased from 39% to 38%.

Changes also come into effect for small and medium enterprises. Provisional tax estimation uplifts are now removed. The GST payment threshold is now at $2 million. GST registration is now set at $60,000. The provisional tax “use of money” threshold is $50,000 and the use of money interest rate has been reduced also.

The full list of changes and breakdown of tax brackets can be seen at the Beehive website, here.