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Budget 2014 Home Page Key Facts for Taxpayers - Budget 2014

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 312 9 0 0
1 - 10,000 358 10 166 1
10,001 - 20,000 635 18 1,131 4
20,001 - 30,000 474 14 1,540 5
30,001 - 40,000 306 9 1,576 6
40,001 - 50,000 310 9 2,126 7
50,001 - 60,000 284 8 2,647 9
60,001 - 70,000 207 6 2,555 9
70,001 - 80,000 157 5 2,442 9
80,001 - 90,000 124 4 2,309 8
90,001 - 100,000 78 2 1,732 6
100,001 - 125,000 99 3 2,734 10
125,001 - 150,000 42 1 1,467 5
150,001+ 86 2 6,164 22
All 3,470 100 28,589 100

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 2015.

Note: Figures may not sum to total owing to rounding.

Personal income tax

10.5c per $1 on income up to $14,000

17.5c per $1 on income between $14,001 and $48,000)

30c per $1 on income between $48,001 and $70,000

33c per $1 on income over $70,000

Company tax rate

The company tax rate is 28%

GST

The rate of GST is 15%

Where core Crown expenses go

2014/15: $73.1b (30.3% of GDP)

Where core Crown expenses go.

Social security and welfare includes social assistance benefits such as NZ Superannuation, Jobseeker Support and Emergency Benefit, Supported Living Payment and Sole Parent Support.

Where core Crown revenue comes from

2014/15: $72.5b (30.1% of GDP)

Where core Crown revenue comes from.

Other direct taxes includes resident interest and dividend withholding taxes. Other indirect taxes includes customs, excise and gaming duties and levies.

Expenses and revenue are on a core Crown basis and so exclude Crown entities and State-owned Enterprises.

How the following factors affect tax revenue

A 1% point increase in: ($m)
Wages and salaries 285
Taxable business profits 130
Spending by households 170

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 45

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

Spending restraint will lead to growing surpluses

Spending restraint will lead to growing surpluses.

Tax revenue has increased as the economy has recovered. But the fiscal turnaround has been achieved largely by expenditure restraint that targets value and results.

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