1News

Tax cuts are coming this week – Here's what to expect

July 29, 2024

Tax cuts are legally effective from July 31. (Source: istock.com)

Millions of New Zealanders are set to have a little more in their pay packets with the Government's promised tax cuts officially taking effect from this Wednesday.

The tax policy changes will apply to around 3.5 million people, according to Finance Minister Nicola Willis and Revenue Minister Simon Watts.

Here's what you need to know.

How much is my tax cut going to be?

How much a person receives from the tax changes will be different depending on their income and circumstances.

A minimum wage earner would be better off by around $12.50 a week
A single adult earning $55,000 a year will be better off by about $25.50 a week
A sole parent with two teenage kids will be better off by around $45 a week
A retired couple receiving superannuation with no other income will get $4.50 a week, rising to $13 a week.

You can check the Government's Budget tax calculator to find out if you will be receiving a tax cut and by how much.

Do I need to do anything to get my tax cut?

In a word? No.

The country's payroll providers have been busy preparing for the changes in the tax brackets, so eligible New Zealanders should automatically receive that tax relief in their pay.

More information about what employers need to do can be found on Inland Revenue's website.

The Finance Minister said every dollar of the Budget's tax relief was funded by "reprioritisation" and savings. (Source: Breakfast)

However, families who are eligible for the upcoming FamilyBoost tax credit do need to apply to receive that payment.

Eligible families needed to start saving early childhood education (ECE) invoices from July 1. They will be able to register for the FamilyBoost credit from September, with the first payment scheduled for October.

Families will only be able to claim this payment once a quarter. You can find more information about how to apply here.

What should I do with my tax cuts?

More Stories

Christchurch mayor Phil Mauger wants to keep up a focus on reducing the city's debt. Photo: RNZ/ Anna Sargant

Re-elected Christchurch mayor to focus on debt, liveability

Phil Mauger is grateful to be re-elected for a second term and wants to keep the city's momentum going.

8 mins ago

4:30

Wayne Brown celebrates re-election as mayor of Auckland with Desley Simpson, who returns as deputy mayor. Photo: Jessica Hopkins / RNZ

Wayne Brown returns as Auckland mayor, promising transport fixes

Brown confirmed this would be his second and final term as mayor.

33 mins ago

4:30

Local elections live: Little wins Wgtn mayoralty, Radich out in Dunedin

Polls have closed across the country with progress results expected from this afternoon.

8:06pm

Former Labour leader Andrew Little’s been provisionally elected the new mayor of Wellington.

Local elections 2025: Brown, Mauger re-elected as Little takes Wellington

Incumbents have held firm in the country's two largest cities, while Wellington has opted for new but familiar leadership.

7:30pm

4:30

It's estimated more than 5000 people are living on the street, in a garage or a vehicle - a quarter of whom are aged over 65.

Retirement Commissioner worried more older people will end up homeless

Jane Wrightson's backing a petition calling for action to address the housing crisis facing older people.

6:49pm

2:20

'Family silverware': Labour slams Govt plan to sell Chorus stake

The Finance Minister says with the completion of the ultra-fast broadband fibre initiative, there's no longer a policy reason for the Crown to own Chorus.

Friday 6:21pm

2:16

Local elections live: Little wins Wgtn mayoralty, Radich out in Dunedin

Polls have closed across the country with progress results expected from this afternoon.

8:06pm

Local elections 2025: Brown, Mauger re-elected as Little takes Wellington

Incumbents have held firm in the country's two largest cities, while Wellington has opted for new but familiar leadership.

7:30pm