personal tax tagged posts
April 24, 2017 New Zealand Taxation
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...Read More
January 17, 2017 New Zealand Finance
In a new report published on January 16th, Oxfam New Zealand has revealed the state of income inequality in New Zealand, claiming that a small number of individuals in the country control more wealth than a significant portion of people.
In its report, Oxfam claimed that just 2 individuals have more wealth between each other than all the wealth held by approximately 30 percent of New Zealand adults.
Further, the richest 1 percent of all New Zealanders collectively hold 20 percent of the country’s wealth, while the bottom 90 percent of people holds less than half the country’s wealth.
The results of the report are based on analysis of total wealth, and not disposable income, as many high-wealth indivi...Read More
June 28, 2016 New Zealand Taxation
New data shows that large wealth gaps exist between different age groups and ethnic groups in New Zealand.
On June 28th Statistics New Zealand released new data regarding the distribution of net wealth across different groups in the country.
It was shown that approximately 70 percent of total household net worth in New Zealand is held by the top 20 percent of households in the country.
The distribution of net worth was heavily dependant on age, with people aged 15-24 years old having a median net worth of NZD 1 000, while those aged over 65 years having a net worth of NZD 288 000.
There was also marked differences between ethnic groups, with Europeans having a median household net worth of NZD 114 000, while Maori, Pacific people, and Asian groups holding NZD 23 000, NZD 12 000, and NZD ...Read More
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%...Read More