New Zealand cuts tax rates - not often a government reduces the personal tax burden.

As of yesterday in New Zealand all personal income rates were cut to varying extents, along with some other tax cut measures. However GST went up from 12.5 to 15 per cent . According to the press the Government's "GST-income tax switch" will see the vast majority of income earners better off.
As of yesterday in New Zealand all personal income rates were cut to varying extents, along with some other tax cut measures. However GST went up from 12.5 to 15 per cent . According to the press the Government's "GST-income tax switch" will see the vast majority of income earners better off.

As an example the NZ www.taxguide.govt.nz calculator shows a $30,000 wage equates to a net weekly gain of $5.29, while $120,000 will be $52.78 per week better off. The Government is stating this package is part of its goal to encourage savings, investment and exports, and move away from a collective Kiwi tendency to borrow, consume and over-invest in housing.

New rates are:

Income range Tax rate
$0 to $14,000 10.5%
$14,000 to $48,000 17.5%
$48,001 to $70,000 30%
$70,001 and higher 33%

We think those candidates considering NZ as a place to work will find these rates pleasing compared to those prevalent in UK and Europe. GST at 15% also looks very favourable as a comparison, especially with the likes of the UK VAT rate going up to 20% in January. All in all some good news if you are looking at a move to NZ.