Putting more money in your pocket

Workers are now getting more money in their pockets following tax changes that came into effect on 1 October.

Our tax changes mean a family on the average household income of $76,000 will receive a weekly tax cut of about $46 and will only pay extra GST of about $21. This leaves them about $25 a week better off.

Someone on the average wage of $50,000 will receive a weekly tax cut of about $29. They will pay extra GST of about $13, leaving them about $15 a week better off.

On 1 October, Working for Families, benefits, and NZ Super payments increased by 2.02 per cent to compensate for the rise in GST. Superannuitants get a double boost from our tax package through the rise in New Zealand Super, and through personal tax cuts that will apply to NZ Super payments, and to any other income such as interest, dividends, or part-time work.

To work out your tax cut, visit the tax calculator at www.taxguide.govt.nz.