Accelerate Budget Alert 2024
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 […]
The Back Pocket Boost
Changes to personal income tax thresholds take effect from 31 July: This is designed to give New Zealanders some breathing space after several years where higher wages dragged them into higher tax brackets due to inflation. Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should […]
Tax threshold changes and your business
Businesses need to note that the current thresholds apply for the first 3 months and 30 days of the 2024–25 tax year; the new thresholds for the remaining period. For the 2024-25 year only, composite tax rates will apply: Taxable Income Composite tax rate Employers need to ensure their payroll providers make the necessary changes […]
Other tax credits and FamilyBoost
Comparable to the extension of the personal income tax rate thresholds is the change to the independent earner tax credit (IETC). It’s currently available for people earning between $24,000 and $48,000/year (providing a tax credit of up to $20 per fortnight). From 31 July 2024, the upper income limit will be extended from $48,000 to […]
Infrastructure, resilience and housing
Budget 2024 invests $1.2 billion over three years in a new Regional Infrastructure Fund covering: First in line are areas still recovering from Cyclone Gabrielle such as the East Cape region and parts of Northland. A 30-year National Infrastructure Plan and National Infrastructure Agency are also being established to expedite development across road, rail and […]
Health and education
The Budget allocates $3.4b for hospital and specialist services and $2.1b for primary care, community and public health through Health New Zealand. $1.77b is allocated to Pharmac. The free breast screening programme for women aged 45 –69 will be extended to include women up to the age of 74. The Gumboot Friday initiative will receive […]
