3.5 Million Kiwis to See Increased Take-Home Pay Starting Next Week

Inland Revenue (IRD) has been instrumental in guiding payroll providers and government agencies to implement the necessary updates.

Finance Minister Nicola Willis and Revenue Minister Simon Watts have announced that from Wednesday next week, 3.5 million New Zealand workers will benefit from increased take-home pay due to new tax policy changes.

Minister Willis stated, “The Government’s tax policy changes will be effective from Wednesday. Over 242,000 employers and more than 120 payroll providers have been diligently preparing to ensure this transition is smooth.”

Inland Revenue (IRD) has been instrumental in guiding payroll providers and government agencies to implement the necessary updates. “Digital Service Providers across New Zealand are in the final stages of development and testing, ensuring that Kiwi workers will receive the tax relief they are entitled to,” added Willis.

The new tax changes include adjustments to tax thresholds and an increase in the in-work tax credit, which will provide up to $50 more per fortnight for low-to-middle income working families with children. Additionally, the independent earner tax credit has been expanded to include individuals earning up to $70,000 annually, offering up to $20 per fortnight for those not receiving a benefit or Working for Families.

Minister Watts highlighted, “94 percent of Kiwi households will experience financial improvement with the implementation of our tax package. For detailed information on the changes and personal benefits, visit the tax calculator at Budget.govt.nz.”

For further details on the changes and employer requirements, visit ird.govt.nz.