ACT Calls for Changes to Tax Threshold
May 25, 2016 New Zealand Taxation
The ACT Party wants to ease the tax burden faced by workers earning between NZD 48 thousand and NZD 100 thousand.
In a press release issued on May 25th the ACT Party called for a rejig of the thresholds for personal income tax in New Zealand.
The proposed new tax breaks would remain the same for salaries below NZD 48 thousand, but would be dropped to 25 percent from 30 percent on incomes between NZD 48 thousand and NZD 100 thousand.
All incomes in excess of NZD 100 thousand will be taxed at 33 percent.
The changes to the tax brackets would primarily help taxpayers earning between NZD 48 thousand and NZD 100 thousand, as “…these are hard-working Kiwis paying off mortgages and raising families. Yet National taxes them at 33%. The top tax bracket shouldn’t cut in until someone earns at least $100,000.”
It was further added that the thresholds should be indexed to inflation to ensure that taxpayers are not “…unwittingly being pushed into higher tax brackets.”