Biz Accountants and Tax Consultants

Changes to personal income tax have been announced as part of the Government’s Tax Relief package. More information including a calculator to estimate how much you could benefit can be found at www.budget.govt.nz

These changes will come into effect from 31 July 2024. Here are the highlights of the upcoming changes:

1. New personal income tax thresholds, shown in the table below

2. The Independent Earner Tax Credit (IETC) upper threshold for eligibility has been extended from $48,000 to $70,000

3. The base rate for the In-Work Tax Credit (IWTC) will increase from $3,770 ($72.50 per week) to $5070 ($97.50 per week)

4. The after-tax threshold for the Minimum Family Tax Credit (MFTC) will increase from $35,204 to $35,316

More information is available on our website: www.ird.govt.nz/income-tax-changes

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