Last updated:
Thursday, 14 May 2020
Due to the impact of the COVID-19 pandemic and the resulting uncertainty in projections, the Treasury is not in a position to update the Estimates of Revenue Effects of Small Tax Rate and Tax Base Changes for Budget 2020. The information presented here remains as it was for Budget 2019.
Direct Taxes | Full-Year Effect [2] ($m) |
---|---|
Change in Tax Rates [3] | |
A one-percentage-point change in: | |
top personal rate [4] (rate = 33%) | 340 |
third personal rate (rate = 30%) | 215 |
second personal rate (rate = 17.5%) | 640 |
bottom personal rate (rate = 10.5%) | 420 |
company rate (rate = 28%) |
|
change in company tax revenue from company tax rate change | 540 |
change in company tax revenue excluding Crown-owned companies [5] | 490 |
imputation credits offset if personal rates do not change when company rate does [6] | 160 |
change in total company tax revenue less personal tax offset | 380 |
change in company tax revenue excluding Crown-owned companies less personal tax offset | 330 |
Changes in Thresholds |
|
A one-thousand-dollar change in: | |
the top personal income tax threshold (currently $70,000) |
20 |
the middle personal income tax threshold (currently $48,000) | 160 |
the bottom personal income tax threshold (currently $14,000) | 190 |
Changes in Tax Bases |
|
A one-percentage-point change in the growth rate of: | |
wages and salaries | 390 |
taxable business profits | 195 |
Indirect Taxes |
|
Change in the GST base and tax rate | |
A one-percentage-point change in: | |
the total GST base [7] | 315 |
the private GST base [8] | 230 |
A one-percentage-point change in the GST rate (current rate = 15%): | |
impact on total GST | 1,875 |
impact on GST generated from private spending only [9] | 1,325 |
Changes in the excise duty rates [10] |
|
Alcohol [11]: $1 change in the relevant rate per litre of alcohol for beer, wine and spirits | 25 |
Tobacco [12]: $10 change in rate per 1000 cigarettes | 10 |
Petrol [13]: 1 cent per litre change in excise duty on petrol | 35 |
Please read the Introduction for more information about this table, including the caveats and assumptions.
See also Aggregate Personal Income Tax Revenue Estimate Tool.
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