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 | 244 | 7 | 0 | 0 |
| 1 - 10,000 | 433 | 13 | 221 | 1 |
| 10,001 - 20,000 | 700 | 21 | 1,213 | 5 |
| 20,001 - 30,000 | 497 | 15 | 1,615 | 7 |
| 30,001 - 40,000 | 330 | 10 | 1,689 | 7 |
| 40,001 - 50,000 | 315 | 9 | 2,165 | 10 |
| 50,001 - 60,000 | 223 | 7 | 2,095 | 9 |
| 60,001 - 70,000 | 176 | 5 | 2,178 | 10 |
| 70,001 - 80,000 | 119 | 3 | 1,861 | 8 |
| 80,001 - 90,000 | 89 | 3 | 1,665 | 7 |
| 90,001 - 100,000 | 52 | 2 | 1,150 | 5 |
| 100,001 - 150,000 | 106 | 3 | 3,170 | 14 |
| 150,001+ | 58 | 2 | 3,788 | 17 |
| All | 3,343 | 100 | 22,809 | 100 |
This table includes tax on NZ Superannuation and major Social Welfare benefits, but excludes ACC levies, Working for Families and independent earner tax credits. Only individuals of working age are included (ie, 16 years and above). Analysis is based on Household Economic Survey data sourced from Statistics New Zealand. Data are projected for the year ended March 2012.
Note: Figures may not sum to total due to rounding.
Personal income tax (decreased on 1 October 2010)
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)
Company tax
The company tax rate dropped from 30% to 28% on 1 April 2011.
GST
The rate of GST rose from 12.5% to 15% on 1 October 2010.
Working for Families changes
Increase the abatement rate of the Working for Families tax credits from 20% currently to 25% over the next four indexation rounds.
Reduce income abatement threshold from $36,827 to $36,350 on 1 April 2012 and reduce it by $450 each indexation round until it reaches $35,000.
Remove the indexation of Family Tax Credit for children 16 and over until it is aligned to the Family Tax Credit amounts for the eldest child under 16 or for subsequent children aged 13 to 15.
Working for Families spending has increased significantly
- Working for Families spending has increased significantly
-
KiwiSaver changes
Increase minimum employee contribution from 2% to 3% from 1 April 2013.
Increase compulsory employer contribution from 2% to 3% from 1 April 2013, subject to Employer Superannuation Contribution Tax at employee's marginal tax rate.
Decrease member tax credit from $1 to 50c, up to a maximum of $521 a year, for the year ending 30 June 2012 and beyond.
Total contributions to KiwiSaver will continue to increase
- Total contributions to KiwiSaver will continue to increase
-
Growth in the Government's net worth
- Growth in the Government's net worth
-
The net value of the three parts of the Government's balance sheet has increased from -$8 billion in 1995 to $95 billion in 2010.
Social - assets and liabilities held to provide public services.
Financial - assets and liabilities held to finance or pre-fund government expenditure.
Commercial - assets and liabilities held for purely commercial objectives.
How does a 1% change in growth affect tax?
| Tax source: | ($m) |
|---|---|
| Wages and salaries | 245 |
| Taxable business profits | 130 |
| Spending by households | 133 |
Estimated effect on a full year's revenue of a one-percentage point change in the growth or income or spending source in 2011/12.
What is the full-year cost of... ?
| ($m) | |
|---|---|
| $1 a week increase (in the hand) to NZ Super | 30 |
| $1 a week increase (in the hand) to other benefits | 19 |
| $1 billion increase in government debt | 53 |
Ready reckoner for tax rate and base changes: http://www.treasury.govt.nz/government/revenue/estimatesrevenueeffects
Further Budget 2011 information is available on: http://www.treasury.govt.nz/budget/2011
