Joyce Teases tax Adjustment

April 24, 2017 New Zealand Taxation

NZ taxesMiddle-class New Zealanders could soon enjoy a tax break, as the Finance Minister hints at a tax threshold adjustment.

The Finance Minister Steven Joyce has indicted that if the National party is re-elected, then it will raise the tax threshold on personal incomes.

The Minister explained that the current average salary in New Zealand is NZD 55,000 per year, while the threshold for the 30 percent marginal tax rate is NZD 48 000.

The disparity between the pay levels means that some people who are earning the average wage will be paying the top tax rate.

Further, if the same earner is paying off their student loan, then their effective marginal tax rate will be 42 percent.

Steven Joyce added that when taxes are that high “…we rightly worry about whether young people can save for a house.”

The Minister did not disclose whether the new raised tax threshold will be announced in the upcoming national budget.

Tags: