Tax cuts put 775,000 taxpayers in Auckland on tax rate of 17.5 cents in the dollar or less

More than 775,000 income earners in Auckland will face a statutory income tax rate of 17.5 per cent or less after the 1 October tax cuts kick in, MP Peseta Sam Lotu-Iiga says.

“This is 69.6 per cent of Auckland income earners. It is great news for hard-working people in our region and a welcome boost to household budgets in our community,” MP Peseta Sam Lotu-Iiga says.

“On 1 October, we’re cutting personal taxes and tax on savings – such as interest and dividends – as well as increasing GST. This will give people more cash in their pockets, encourage saving, and help boost our local businesses.

“The across-the-board tax cuts reduce the current 12.5 per cent rate down to 10.5 per cent, and the 21 per cent rate down to 17.5 per cent. Two thirds of the value of the tax cuts will go to those bottom two tax rates – to people earning under $48,000 a year.

“As well as improving the incentives to work, our tax package tilts the economy towards savings, investment and exports, and away from the unsustainable borrowing, consumption and over-investment in housing of the past decade.

"After the 1 October changes an average income family will be about $25 a week better off, an average wage earner about $15 a week better off, and a couple on NZ Super about $11 a week better off. These benefits will actually grow over time as wages increase.

"This is great news for Maungakiekie families. They will benefit immediately from tax cuts and they will benefit further over the longer-term from a lift in growth and jobs that this package will create,” MP Peseta Sam Lotu-Iiga says.

Find out how much better off you will be after 1 October. Visit the tax calculator at www.taxguide.co.nz.

ENDS

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