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NZ Tax Rate Changes for 31 July 2024

The information below has been updated after the New Zealand budget announcement on 30/05/2024.

As part of its budget announcement on 30 May 2024, the New Zealand government has announced proposed tax changes to take effect on 31 July 2024. The proposed changes are summarised in the table below:

01/04/2024 - 30/06/2024

31/07/2024 onward

01/04/2024 - 30/06/2024

31/07/2024 onward

Income band ($)

Rate (%)

Income band ($)

Rate (%)

0 - 14,000

10.5

0 - 15,600

10.5

14,001 - 48,000

17.5

15,601 - 53,500

17.5

48,001 - 70,000

30

53,501 - 78,100

30

70,001 - 180,000

33

78,101 - 180,000

33

180,001 +

39

180,001 +

39

These changes affect the following tax codes:

  • M

  • M SL

  • ME

  • ME SL

The independent earner tax credit (IETC) thresholds are also changing as of 31/07/2024, whereby the upper threshold is changing from $48,000 to $70,000, with abatement of the tax credit starting from $66,000 as opposed to $44,000. This affects the ME and ME SL tax codes.

Updated tax rates that incorporate these changes will be made available for downloading via Tax Period Maintenance on 22/07/2024.

 

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