The core of the 2024 New Zealand Budget is tax relief for working families and restrained public spending.
Households anxious about cost of living and job security make cautious consumers. Businesses coping with rising overheads and shrinking retail spends tend to tighten up to maintain cash flow. Changes to the bright-line test and interest deductibility made it easier for property investors but removal of the First Home Grant makes it harder for first home buyers. If we can cool inflation during the second half of the year, interest rates might cool too. It is hoped that the boosts to the back pocket and to families will inject a bit more optimism in the meantime.
In this issue:
- The Back Pocket Boost
- Tax threshold changes and your business
- Other tax credits and FamilyBoost
- Infrastructure, resilience and housing
- Health and education
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
