Key Facts for Taxpayers (Part 2)
Who pays income tax... and how much?
| Annual individual taxable income |
Number of people | Tax paid | ||
|---|---|---|---|---|
| ($) | (000) | % | ($m) | % |
| Zero | 236 | 7 | 0 | 0 |
| 1 - 10,000 | 446 | 13 | 237 | 1 |
| 10,000 - 20,000 | 834 | 25 | 1,576 | 7 |
| 20,000 - 30,000 | 416 | 12 | 1,507 | 6 |
| 30,000 - 40,000 | 349 | 10 | 1,965 | 8 |
| 40,000 - 50,000 | 304 | 9 | 2,306 | 10 |
| 50,000 - 60,000 | 244 | 7 | 2,506 | 10 |
| 60,000 - 70,000 | 168 | 5 | 2,267 | 9 |
| 70,000 - 80,000 | 113 | 3 | 1,885 | 8 |
| 80,000 - 90,000 | 67 | 2 | 1,367 | 6 |
| 90,000 - 100,000 | 56 | 2 | 1,332 | 6 |
| 100,000 - 150,000 | 89 | 3 | 2,961 | 12 |
| 150,000+ | 52 | 2 | 3,963 | 17 |
| All | 3,374 | 100 | 23,872 | 100 |
Personal tax, GST and company tax changes
Personal income tax
From 1 October 2010 rates of personal income tax will be:
- 10.5c per $1 on income up to $14,000 (down from 12.5c)
- 17.5c per $1 on income between $14,001 and $48,000 (down from 21c)
- 30c per $1 on income between $48,001 and $70,000 (down from 33c)
- 33c per $1 on income over $70,000 (down from 38c)
GST
- The rate of GST will rise from 12.5% to 15% from 1 October 2010.
Company tax
- The company tax rate will drop from 30% to 28% from the 2011/12 income year.
These changes are part of a package of wider tax reform - further information is available at www.taxguide.govt.nz
How will changes to personal tax rates and GST affect me?
| Annual individual taxable income |
Annual decrease in income tax< |
Annual increase in GST |
Net annual after-tax income change |
Net weekly after-tax income change |
|---|---|---|---|---|
| ($) | ($) | ($) | ($) | ($) |
| 5,000 | 100 | 88.38 | 11.63 | 0.22 |
| 10,000 | 200 | 176.75 | 23.25 | 0.45 |
| 15,000 | 315 | 263.41 | 51.59 | 0.99 |
| 20,000 | 490 | 343.2 | 146.8 | 2.82 |
| 25,000 | 665 | 433.49 | 231.51 | 4.45 |
| 30,000 | 840 | 513.28 | 326.72 | 6.28 |
| 35,000 | 1,015.00 | 593.07 | 421.93 | 8.11 |
| 40,000 | 1,190.00 | 672.86 | 517.14 | 9.94 |
| 45,000 | 1,365.00 | 750.03 | 614.97 | 11.83 |
| 50,000 | 1,530.00 | 817.09 | 712.91 | 13.71 |
| 55,000 | 1,680.00 | 884.76 | 795.24 | 15.29 |
| 60,000 | 1,830.00 | 952.43 | 877.57 | 16.88 |
| 65,000 | 1,980.00 | 1,020.10 | 959.9 | 18.46 |
| 70,000 | 2,130.00 | 1,087.77 | 1,042.23 | 20.04 |
| 80,000 | 2,630.00 | 1,213.01 | 1,416.99 | 27.25 |
| 90,000 | 3,130.00 | 1,338.25 | 1,791.75 | 34.46 |
| 100,000 | 3,630.00 | 1,463.49 | 2,166.51 | 41.66 |
| 110,000 | 4,130.00 | 1,588.73 | 2,541.27 | 48.87 |
| 120,000 | 4,630.00 | 1,713.97 | 2,916.03 | 56.08 |
After-tax changes in disposable income presented above are indicative only. The net after-tax changes apply to a single income earner and do not include tax credits (except the independent earner tax credit), tax rebates and the ACC levy. In addition, actual changes to the amount of GST an individual pays will depend on an individual's spending and savings choices.
For more on how changes to personal income tax and GST affect you, please visit the Budget 2010 tax calculator: www.taxguide.govt.nz
Personal income tax change examples
Example 1: Single earner near the average wage
| Weekly income ($) | Before | After |
|---|---|---|
| Regular taxable income | 961.54 | 961.54 |
| Income tax | 183.65 |
154.23 |
|
Disposable income |
777.89 |
807.31 |
|
Change in disposable income due to personal tax changes |
29.42 |
|
|
Increase in GST |
13.51 |
|
|
Net weekly change in disposable income |
+15.91 |
|
Example 2: Couple receiving New Zealand Superannuation only
| Weekly income ($) | Before | After |
|---|---|---|
|
Regular taxable income |
561.24 |
561.24 |
|
NZ Super adjustment |
0.00 |
10.12 |
|
Income tax |
71.82 |
60.30 |
|
Disposable income |
489.42 |
511.06 |
|
Change in disposable income due to personal tax changes |
21.64 |
|
|
Increase in GST |
10.87 |
|
|
Net weekly change in disposable income |
+10.77 |
|
Example 3: Combined income couple with 10 properties in Auckland
| Weekly income ($) | Before | After |
|---|---|---|
|
Regular income (salary) |
5,769.23 |
5,769.23 |
|
New taxable income (depreciation changes) |
0.00 |
769.23 |
|
Tax-free income |
769.23 |
0.00 |
|
Income tax |
1,790.38 |
1,808.46 |
|
Disposable income |
4,747.85 |
4,729.77 |
| Change in disposable income due to personal tax changes |
-18.08 |
|
|
Increase in GST |
89.39 |
|
|
Net weekly change in disposable income |
-107.47 |
|
Average weekly earnings before and after tax
- Average weekly earnings before and after tax
Budget 2010 forecasts of average ordinary time weekly earnings averaged over the fiscal year. Average ordinary time weekly earnings are produced as part of the Quarterly Employment Survey sourced from Statistics New Zealand.
Reduction in tax paid since 1996
- Reduction in tax paid since 1996
Cumulative reduction in income tax paid as a percentage of annual tax applicable as at June 1996, including the October 2010 personal income tax cuts. Tax credits and rebates (except the low income rebate and the independent earner tax credit) have been excluded.
