The Key Facts for Taxpayers card is a summary of tax, expenditure and income data from the Budget Economic and Fiscal Update (BEFU) 2008. It was released at the same time as other Budget 2008 documents on 22 May 2008.
The Key Facts for Taxpayers document is available in HTML format below and for viewing or download in Adobe PDF format.
What is the new personal income tax scale?#
| Tax rates and thresholds | ||||
|---|---|---|---|---|
|
Current
|
15% | 21% | 33% | 39% |
| up to | $9,500 | $38,000 | $60,000 | above $60,000 |
| New | 12.5% | 21% | 33% | 39% |
| from 1 October 2008 | $14,000 | $40,000 | $70,000 | above $70,000 |
| from 1 April 2010 | $17,500 | $40,000 | $75,000 | above $75,000 |
| from 1 April 2011 | $20,000 | $42,500 | $80,000 | above $80,000 |
For example from 1 April 2011, an individual earning $40,000 pa pays 12.5% tax on the first $20,000 of income and 21% tax on the remaining $20,000.
| Annual individual taxable income ($) | Number of people | Tax paid | ||
|---|---|---|---|---|
| (000) | % | ($m) | % | |
| Zero | 239 | 7 | 0 | 0 |
| 1 - 10,000 | 442 | 14 | 248 | 1 |
| 10,000 - 20,000 | 841 | 26 | 1,968 | 8 |
| 20,000 - 30,000 | 372 | 11 | 1,592 | 6 |
| 30,000 - 40,000 | 339 | 10 | 2,191 | 8 |
| 40,000 - 50,000 | 314 | 10 | 2,895 | 11 |
| 50,000 - 60,000 | 225 | 7 | 2,814 | 11 |
| 60,000 - 70,000 | 146 | 4 | 2,338 | 9 |
| 70,000 - 80,000 | 112 | 3 | 2,204 | 8 |
| 80,000 - 90,000 | 58 | 2 | 1,372 | 5 |
| 90,000 - 100,000 | 35 | 1 | 965 | 4 |
| 100,000 - 150,000 | 87 | 3 | 3,217 | 12 |
| 150,000+ | 51 | 2 | 4,569 | 17 |
| All | 3,261 | 100 | 26,373 | 100 |
This table includes tax on New Zealand Superannuation and major Social Welfare benefits, but excludes ACC levies and anyone who is under 15.
Data are projected for the year ended March 2009 and include the changes to tax rates and thresholds on 1 October 2008.
| Current annual taxable income ($) | Weekly after-tax income increase above current ($) | Annual increase ($) 1 April 2011 |
||
|---|---|---|---|---|
| from 1 Oct 2008 | from 1 April 2010 | from 1 April 2011 | ||
|
20,000
|
12 | 18 | 22 | 1,130 |
|
30,000
|
12 | 18 | 22 | 1,130 |
|
40,000
|
16 | 22 | 26 | 1,370 |
|
50,000
|
16 | 22 | 32 | 1,670 |
|
60,000
|
16 | 22 | 32 | 1,670 |
|
70,000
|
28 | 34 | 44 | 2,270 |
|
80,000 and above
|
28 | 39 | 55 | 2,870 |
The after-tax incomes calculated in this table exclude the ACC levy.
|
Annual family taxable income ($)
|
Number of children under 13
|
|||
|---|---|---|---|---|
| One | Two | Three | Four | |
| ... | ... | ... | ... | ... |
| 30,000 | 4 | 7 | 10 | 13 |
| 40,000 | 11 | 14 | 17 | 20 |
| 50,000 | 11 | 14 | 17 | 20 |
| 60,000 | 11 | 14 | 17 | 20 |
| 70,000 | 11 | 14 | 17 | 20 |
| 80,000 | 0 | 14 | 17 | 20 |
| 90,000 | 0 | 2 | 17 | 20 |
| 100,000 | 0 | 0 | 17 | 20 |
| 110,000 | 0 | 0 | 0 | 20 |
| 120,000 | 0 | 0 | 0 | 20 |
| Cut-off points | 74,862 | 90,457 | 106,052 | 125,547 |
Working for Families Tax Credits are in two parts, Family Tax Credit (FTC) and In-Work Tax Credit (IWTC). This assumes family income type is salary and wage, the family works the required hours to receive IWTC, and all children are under 13. Children over 13 may result in higher credits. The entitlements are weekly, rounded to the nearest dollar. Includes estimated benefits and other non-wage income for year ended March 2009.
|
By increasing thresholds by $1,000:
|
($m) |
|---|---|
|
45 |
|
130 |
|
25 |
|
By decreasing tax rates by 1%:
|
($m) |
|
165 |
|
140 |
|
405 |
|
225 |
|
225 |
|
820 |
Estimated decrease in tax revenue for the year ended March 2009 for tax thresholds and rates as they stand at Budget day. This allows for interaction between tax types, but makes no allowance for feedback effects from the economy.
|
What is the full-year cost of ?
|
($m) |
|---|---|
| $1 a week increase (in the hand) to NZ Super | 27 |
| $1 a week increase (in the hand) to other benefits | 14 |
| $1 billion increase in government debt | 67 |
| Average individual wage earnings: | ($) |
|---|---|
| Full-time earner | 47,637 |
Full-time earner works for more than 30 hours per week.
| Average family gross income: | ($) |
|---|---|
| Couple with children | 96,322 |
| Couple with no children | 77,268 |
| Sole parent | 32,403 |
| Single person | 29,632 |
Includes estimated benefits and other non-wage income for year ended March 2009.
Further Budget 2008 information is available on:
Where do core Crown expenses go?#
2008/09: $61.9b (33.4% of GDP)
Other social security & welfare includes the Accommodation Supplement and the Domestic Purposes, Unemployment, Sickness and Invalid's benefits.
Where does core Crown revenue come from?#
2008/09: $61.9b (33.4% of GDP)
Expenses and revenue are on a core Crown basis and so exclude Crown Entities and State-owned Enterprises.
What are the new spending initiatives for Budget 2008?#
New operating spending: $23.4b over 4 years
New capital spending: $1.9b over 4 years
Gross sovereign-issued debt (excluding Settlement Cash)#
2008/09: $32.5b (17.5% of GDP)
Note - Lines represent % GDP, while bars represent dollar values in billions.
