Budget 2020 update - 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.
The table below is projected for the tax year 2019/20 (1 April 2019 to 31 March 2020) from the Treasury’s microsimulation model TAWA. It includes tax on New Zealand 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.
| Annual individual taxable income ($) |
Number of people | Tax paid | ||
|---|---|---|---|---|
| (000) | % | ($m) | % | |
| Zero | 218 | 6 | 0 | 0 |
| 1 – 10,000 | 374 | 10 | 160 | 0 |
| 10,001 – 20,000 | 644 | 17 | 1,170 | 3 |
| 20,001 – 30,000 | 588 | 15 | 1,930 | 5 |
| 30,001 – 40,000 | 342 | 9 | 1,760 | 5 |
| 40,001 – 50,000 | 337 | 9 | 2,340 | 6 |
| 50,001 – 60,000 | 311 | 8 | 2,950 | 8 |
| 60,001 – 70,000 | 246 | 6 | 3,050 | 8 |
| 70,001 – 80,000 | 190 | 5 | 2,970 | 8 |
| 80,001 – 90,000 | 154 | 4 | 2,900 | 8 |
| 90,001 – 100,000 | 105 | 3 | 2,330 | 6 |
| 100,001 – 125,000 | 145 | 4 | 3,980 | 11 |
| 125,001 – 150,000 | 74 | 2 | 2,640 | 7 |
| 150,001+ | 122 | 3 | 8,670 | 24 |
| All | 3,850 | 100 | 36,850 | 100 |
The results in this table are not official statistics. They have been created for research purposes from the Integrated Data Infrastructure (IDI), managed by Stats NZ.
Access to the anonymised data used to produce this table was provided by Stats NZ under the security and confidentiality provisions of the Statistics Act 1975. Only people authorised by the Statistics Act 1975 are allowed to see data about a particular person, household, business, or organisation, and the results in this report have been confidentialised to protect these groups from identification and to keep their data safe.
Careful consideration has been given to the privacy, security, and confidentiality issues associated with using administrative and survey data in the IDI. Further detail can be found in the Privacy impact assessment for the Integrated Data Infrastructure available from www.stats.govt.nz.
The results are based in part on tax data supplied by Inland Revenue to Stats NZ under the Tax Administration Act 1994. This tax data must be used only for statistical purposes, and no individual information may be published or disclosed in any other form, or provided to Inland Revenue for administrative or regulatory purposes.
Any person who has had access to the unit record data has certified that they have been shown, have read, and have understood section 81 of the Tax Administration Act 1994, which relates to secrecy. Any discussion of data limitations or weaknesses is in the context of using the IDI for statistical purposes, and is not related to the data’s ability to support Inland Revenue’s core operational requirements.
The results presented here are the work of the Treasury, not Stats NZ. Figures may not sum to totals due to rounding.
Personal income tax scale
10.5c per $1 on annual taxable income up to $14,000
17.5c per $1 on annual taxable income between $14,001 and $48,000
30c per $1 on annual taxable income between $48,001 and $70,000
33c per $1 on annual taxable income over $70,000
Company tax rate
The company tax rate is 28%
Goods and services tax (GST) rate
The GST rate is 15%