Gearing up for 1 October tax changes

From the beginning of next month, across-the-board personal tax cuts will put more money in Kiwis’ back pockets.

Our tax reforms leave someone on the average wage almost $15 a week better off. Superannuitants get a double boost from both the rise in New Zealand Superannuation and cuts in personal tax, which will apply to New Zealand Superannuation payments, and to any other income such as interest, dividends, or part-time work.

After the changes, a married couple who receive New Zealand Superannuation, own their own home, and who do not have any other income, will be about $11 a week better off. A single superannuitant who owns their home and has $200,000 of investments generating $10,000 income a year will be about $12 a week better off.

New Zealand Superannuation, Working for Families, and benefit payments will all increase by 2.02 per cent to compensate for the rise in GST.

Work out how the tax changes will affect you: http://www.taxguide.govt.nz/