![]() ![]() That's because our tax bands were lowered, from a top tax rate of 39 per cent to 33 per cent, with corporate taxes falling from 33 per cent to 28 per cent. By 2010, the date had shifted around two weeks earlier, meaning our collective tax bill was smaller. ![]() In the early 2000s, Tax Freedom Day fell in late May. Rather, it's our tax band settings that have the most power to put more money into the pockets of average New Zealanders, and especially those on lower salaries. Recently signaled measures such as revoking interest tax deductibility on residential rentals are unlikely to make much of a difference to when Tax Freedom Day falls. This marks a growing disparity between those who have already made it onto the ladder, or to be more accurate, escalator, and those who are facing an out of order sign.Īddressing this disparity will be crucial to achieving the government's aims of improving equality across New Zealanders. The median house price rose more than a fifth in the year to February 2021. New Zealanders' wealth in terms of assets, and particularly our houses, is increasingly out of step with our income. On the other hand, there are some notes of caution for the future. This goes to show how significant the wage subsidy really was. The first wage subsidy ($14 billion) was the equivalent of 4.5% of GDP, or 16.5 days' worth of economic activity. In New Zealand, taxes from these government subsidies have been included in the Tax Freedom Day calculations. However, kudos must be given to the government for its wage subsidies and other business incentives, which have helped keep many New Zealanders employed. That's partly down to annual GDP remaining roughly the same as last year's, despite some lumpy patches across certain months. Think about that: in a year where international trade has been massively disrupted by COVID-19, supply chain issues, lockdowns and closures, we are still managing to pay roughly the same proportion of tax as we did in a good year. This year, New Zealand's date falls on 11 May, two days earlier than it would have been in 2020 and just two days later than 2019. We're interested in seeing exactly what impact our country's policy settings have on Kiwis' wallets, and which direction we're heading in. As in other countries around the world, this marks the hypothetical day when taxpayers have paid their full annual tax bill and get to keep every dollar for themselves for the rest of the year. It's vital that New Zealanders keep talking.Įach year, Baker Tilly Staples Rodway calculates the date when Tax Freedom Day will fall in New Zealand. ![]() And while we've done surprisingly well despite COVID-19, changes to our tax policy now, such as tax deductibility, action on tax band settings and also our local authority rates, have the potential to either solve or exacerbate some of the issues highlighted in the latest Tax Freedom Day results. Whether the government is spending it, collecting it, or we're saving it, it has the power to make a huge difference to our lives. Because the truth is, tax affects every one of us, there's a saying about it. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |