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Budget 2024 delivers overdue tax relief to 3.5 million New Zealanders so they can keep more of what they earn. We are delivering on a key commitment made during the 2023 election campaign.
On July 31 this year, New Zealanders will experience tax relief for the first time in 14 years. This relief is well overdue and will help hardworking Kiwis who have endured a prolonged cost of living crisis.
From July 31 this year, average income households receive tax relief of up to $102 a fortnight and eligible families receive a FamilyBoost childcare payment of up to $150 per fortnight.
Households with children will benefit on average by $78 per fortnight – or $2028 a year.
Working-age New Zealanders benefit on average by $32 a fortnight – or $832 a year.
This is a fiscally neutral package meaning the Government is not borrowing to fund this tax relief and it won’t add to inflationary pressure.
The Government’s tax package targets relief to low and middle-income households. Families with young children are set to benefit most.
Our Government was elected to give a fairer deal to hardworking New Zealanders and the tax package we are confirming today delivers on that promise.
Our Government will raise income tax thresholds to help compensate for wage growth, expand eligibility for the independent earner tax credit, introduce the FamilyBoost childcare payment and increase the in-work tax credit for low to middle-income working families.
Budget 2024 supports families to deal with rising costs and makes our tax system fairer.