Nicola Willis Announces Personal Income Tax Relief and Highlights Strong Public Interest

Approximately 727,000 households are expected to receive at least $75 per fortnight, with 187,000 households benefiting by $100 or more per fortnight.

Finance Minister Nicola Willis has revealed that, with just one week to go before New Zealanders receive personal income tax relief for the first time in fourteen years, over 513,000 people have already used the Budget tax calculator to estimate their benefits.

Minister Willis emphasized the significance of the upcoming tax relief, stating, “Tax relief is long overdue. Starting next Wednesday, personal income tax thresholds will increase from $14,000 to $15,600; from $48,000 to $53,500; and from $70,000 to $78,100. This adjustment will reduce income tax for anyone earning over $14,000.”

The tax changes also include an increase in the in-work tax credit and an expansion of the independent earner tax credit, in addition to the FamilyBoost payment that has already been introduced. Collectively, these measures will return an extra $3.7 billion a year to New Zealanders.

Approximately 727,000 households are expected to receive at least $75 per fortnight, with 187,000 households benefiting by $100 or more per fortnight. Willis noted that the growing number of visitors to the tax calculator indicates a strong interest among Kiwis in understanding how the Budget will personally impact them.

“This tax relief means more money for essential expenses like groceries and petrol, which have seen price increases in recent years,” Willis added. “Our Government is dedicated to rebuilding the economy and fostering economic growth in New Zealand. Our tax package is a key part of this effort.”

Willis encouraged all New Zealanders to use the tax calculator available at budget.govt.nz/taxcalculator/ to see how much they will benefit from the new tax relief measures.