Tax cuts
Tax cuts are happening this Friday 1st October, giving a real boost to families, pensioners and households.
The National Government is making the biggest structural change to the tax system in 25 years. This will help rebalance the economy away from spending and racking up debt towards saving and investment.
Workers in Horowhenua and Kapiti will be pleased to have more of their hard-earned cash in their pocket. 73% of income earners will be paying less than 17.5% in tax.
A person earning around the average wage of $50,000 will be about $15 per week better off, and that's after the small rise in GST to 15% is factored in.
The average household on $76,000 a year will be better off by around $25 a week, or $1300 a year.
Getting these incentives right is a major step in getting our economy on the right track, creating higher-paying jobs and better opportunities for everyone.
Older New Zealanders will get a double boost.
Superannuitants will receive an immediate rise in their NZ Super payments of over 2% to compensate for the GST increase.
This double boost means that a retired couple, living in their own home and receiving only NZ Superannuation, will be better off by almost $11 a week or about $560 a year.
Over the last two years NZ Super payments have increased by 16% which is great news for the many retired people living in Kapiti and Horowhenua.
You can find out exactly how you’ll benefit by using the tax calculator available at my website www.nathanguy.co.nz.