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Budget 2012 Home Page Key Facts for Taxpayers - Budget 2012

Key Facts for Taxpayers (Part 2)

Who pays income tax... and how much?

Who pays income tax... and how much?
Annual individual taxable income ($) Number of people (000) Number of people % Tax paid ($m) Tax paid %
Zero 258 8 0 0
1 - 10,000 409 12 198 1
10,001 - 20,000 676 20 1,189 5
20,001 - 30,000 469 14 1,526 6
30,001 - 40,000 352 11 1,814 7
40,001 - 50,000 276 8 1,891 8
50,001 - 60,000 239 7 2,271 9
60,001 - 70,000 187 6 2,342 9
70,001 - 80,000 124 4 1,938 8
80,001 - 90,000 99 3 1,877 7
90,001 - 100,000 57 2 1,275 5
100,001 - 125,000 88 3 2,386 9
125,001 - 150,000 44 1 1,582 6
150,001+ 65 2 4,838 19
All 3,343 100 25,127 100

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 2013.

Note: figures may not add to totals owing 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 rate

The company tax rate decreased from 30% to 28% on 1 April 2011.

GST

The rate of GST rose from 12.5% to 15% on 1 October 2010.

Main student support changes

  • Increase the student loan repayment rate for New Zealand-based borrowers over the repayment threshold from 10 to 12 cents in the dollar from 1 April 2013.
  • Remove the student loan voluntary repayment bonus from 1 April 2013.
  • Target student allowances: remove eligibility for postgraduate study (except bachelors with honours) and enforce the 200 week limit from 1 January 2013.
  • Maintain the student allowance parental income threshold without CPI adjustment from 1 April 2012 until 31 March 2016.

Increase in student loan repayment rates

Increase in student loan repayment rates
Gross annual income ($) Weekly repayments ($) at 10 cents Weekly repayments ($) at 12 cents Increase per week ($)
25,000 11.38 13.65 2.27
38,000 36.37 43.65 7.28
48,000 55.6 66.72 11.12
70,000 97.91 117.49 19.58

The student loan repayment threshold is $19,084 p.a. (about $367 per week).

Decrease in student loan repayment times

Decrease in student loan repayment times
Level of study Median repayment time at 10 cents Median repayment time at 12 cents Difference
Certificates 5 yrs 8 mths 5 yrs 5 mths 3 mths
Diplomas 6 yrs 1 mth 5 yrs 8 mths 5 mths
Bachelors 7 yrs 4 mths 6 yrs 10 mths 6 mths
Postgraduate 6 yrs 1 mth 5 yrs 8 mths 5 mths
All 6 yrs 5 mths 6 yrs 5 mths

The median repayment time forecast is based on all borrowers who left study in 2009. Data are drawn from the Ministry of Education's Student Loans Integrated Model. This calculation includes the impact of removing the voluntary repayment bonus. Repayment times are rounded to the nearest month.

Decrease in student loan write-downs

  • Budget 2011 changes reduced the write-down of student loan debt from 45.3 cents in the dollar. The 2011/12 write-down is 44.6 cents.
  • Budget 2012 changes further reduce the write-down to 41.9 cents in the dollar by 2015/16.

For more information on how student loan changes affect you, please visit: http://www.studylink.govt.nz

Crown's net worth grows from 2013

Crown's net worth grows from 2013.

The net value of the Crown's balance sheet is forecast to decrease to $65 billion in 2013, before increasing to $73 billion by 2016.

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% point change in growth affect tax?

How does a 1% point change in growth affect tax?
Tax source: ($m)
Wages and salaries 255
Taxable business profits 115
Spending by households 145

What is the full-year cost of... ?

What is the full-year cost of... ?
($m)
$1 a week increase (in the hand) in NZ Superannuation 30
$1 a week increase (in the hand) in other benefits 20
$1 billion increase in government debt 40

Ready reckoner for tax rate and base changes:
http://www.treasury.govt.nz/government/revenue/estimatesrevenueeffects

Further Budget 2012 information is available on:
http://www.treasury.govt.nz/budget/2012

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