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 $70,000/year, although it starts to be reduced when a person earns more than $66,000 per year.
The in-work tax credit supporting low-to-middle income working families with children will also increase by up to $50/fortnight from 31 July 2024.
From 1 July 2024, FamilyBoost, a new childcare rebate, will be administered by Inland Revenue. Eligible families will be able to obtain a reimbursement for up to 25% of their early childhood education (ECE) fees, up to a maximum of $150 per fortnight (taking into account the 20 hours of ECE and the Ministry of Social Development’s childcare subsidy). The maximum amount per fortnight reduces for families with incomes over $140,000/year. Families with incomes over $180,000 are not eligible.
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.
