Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Income tax inflation indexed from 1 April 2008

19 May 2005

Hon Dr Michael Cullen Minister of Finance

Income tax inflation indexed from 1 April 2008

Personal tax rate thresholds will be raised 6.12 per cent on 1 April 2008 under a Budget 2005 commitment to inflation proof incomes, Finance Minister Michael Cullen said today.

The decision will cost the government an estimated $68 million in 2007-08 and $360 million in 2008-09.

"This means that in future taxpayers will pay more tax only if their incomes rise in real terms," Dr Cullen said. "The adjustments will take place every three years beginning on 1 April, 2008."

"To provide greater certainty and administrative ease, we have decided to raise the thresholds by a uniform 2 per cent each year – the mid-point of the Reserve Bank’s price stability target range. Compounded over three years, this produces an increase of 6.12 per cent," Dr Cullen said.

As a result of the changes, taxpayers who earn more than $10,081 will pay $35 less tax each year. Those earning more than $40,324 will pay $314 less and those earning more than $63,672 will pay $534 less.

Legislation to implement the indexation regime will be introduced next year.
Changes to tax thresholds at 1 April 2008
Rate Current threshold New threshold
15% To $9,500 $10,081
21% To $38,000 $40,324
33% To $60,000 $63,672
39% From $60,001 $63,673


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election