On July 1st IRD has announced changes to personal income tax and working for families tax credits coming as part of the Government’s Tax Relief package. These changes will come into effect on 31 July 2024.
Most salary and wage earners don’t need to do anything. It’s up to the employer or the employer’s payroll software provider to make changes. Customers should start to see the benefit in their pay from 31 July.
The key personal income tax change are:
- New personal income tax thresholds (see table).
- The independent earner tax credit (IETC) upper threshold for eligibility has been extended from $48,000 to $70,000.
And the key Working for Families tax credit changes are:
- The base rate fro the in-work tax credit (IWTC) will increase from $3,770 ($72.50 per week) to $5,070 ($97.50 per week).
- The after-tax threshold for the minimum family tax credit (MFTC) will change from $35,204 to $35,316.
Find more information at www.ird.govt.nz/income-tax-changes
Information provided by our partner JMS Chartered Accountants Ltd – www.jmsaccounting.co.nz
