New Zealand Guide On "Bracket Creep" Now Live

A new guide on "bracket creep" is now available for Kiwis, offering a comprehensive look at how inflation can cause people to pay more tax. The guide explains what bracket creep is, how it can impact taxpayers, and what they can do to minimize its impact.

MoneyHub Head of Research Christopher Walsh comments:

"Bracket creep, also known as income tax creep, is the phenomenon where inflation causes people to move into higher tax brackets even though their real incomes haven't increased. This shift results in taxpayers paying more tax than they otherwise would have. With the ongoing cost of living crisis, bracket creep can be a silent killer that erodes the purchasing power of many Kiwis".

"The guide highlights that bracket creep can significantly impact Kiwi taxpayers, especially those on low and middle incomes. It explains that while the effect may not appear significant at first glance, it can significantly increase a taxpayer's tax bill over time".

"The guide stresses the importance of being aware of how inflation can push taxpayers into higher tax brackets and how this can affect the amount of tax they pay. In addition, it provides tips on how taxpayers can plan and minimize the impact of bracket creep on their finances".

"We believe that knowledge is power, and that's why we've created this guide on bracket creep; we want to help Kiwis understand this important issue and take steps to protect their finances. While there may not be much they can do at the policy level, it's important to be aware of bracket creep and plan around it."

The guide is now live and will be updated as needed - Bracket Creep.

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