Key Facts for Taxpayers (Part 2)
Who pays income tax... and how much?
| Annual individual taxable income ($) | Number of people (000) | Number of people % | Tax paid ($m) | Tax paid % |
|---|---|---|---|---|
| Zero | 260 | 8 | 0 | 0 |
| 1 - 10,000 | 374 | 11 | 171 | 1 |
| 10,001 - 20,000 | 704 | 21 | 1,234 | 5 |
| 20,001 - 30,000 | 469 | 14 | 1,539 | 6 |
| 30,001 - 40,000 | 341 | 10 | 1,756 | 7 |
| 40,001 - 50,000 | 293 | 9 | 2,001 | 8 |
| 50,001 - 60,000 | 234 | 7 | 2,232 | 8 |
| 60,001 - 70,000 | 188 | 6 | 2,340 | 9 |
| 70,001 - 80,000 | 138 | 4 | 2,138 | 8 |
| 80,001 - 90,000 | 95 | 3 | 1,791 | 7 |
| 90,001 - 100,000 | 65 | 2 | 1,427 | 5 |
| 100,001 - 125,000 | 99 | 3 | 2,689 | 10 |
| 125,001 - 150,000 | 42 | 1 | 1,488 | 6 |
| 150,001+ | 75 | 2 | 5,590 | 21 |
| All | 3,375 | 100 | 26,397 | 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 2014.
Note: figures may not sum to total 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.
Budget 2013 allocation of the Future Investment Fund
The Future Investment Fund was established to invest the money released by selling minority shareholdings in electricity companies and reducing the Government's stake in Air New Zealand.
In Budget 2013, the Government is allocating $1.52 billion of new capital from the Fund on top of the $569 million allocated in Budget 2012.
Schools, health, science, innovation, transport, and the Canterbury rebuild all benefit from the Future Investment Fund.
New contingencies include funding set aside for:
- Christchurch Justice and Emergency Services Precinct
- supporting Canterbury tertiary education institutions in their recovery from the effects of the earthquakes, and
- building new, modern schools.
Expected spending profile from the Fund
This spending profile assumes that the Fund will receive approximately $6 billion in proceeds from the Government's share offer programme.
Crown's net worth grows from 2012
The net value of the Crown's balance sheet is forecast to increase to $80 billion by 2017.
Social - assets and liabilities held to provide public services.
Commercial - assets and liabilities held for purely commercial objectives.
Financial - assets and liabilities held to finance or pre-fund government expenditure.
How does a 1% point change in growth affect tax?
| Tax source: | ($m) |
|---|---|
| Wages and salaries | 270 |
| Taxable business profits | 120 |
| Spending by households | 160 |
What is the full-year cost of... ?
| ($m) | |
|---|---|
| $1 a week increase (in the hand) in NZ Superannuation | 35 |
| $1 a week increase (in the hand) in other benefits | 15 |
| $1 billion increase in government debt | 36 |
Ready reckoner for tax rate and base changes:
www.treasury.govt.nz/government/revenue/estimatesrevenueeffects
Further Budget 2013 information is available on:
www.treasury.govt.nz and www.budget.govt.nz
