Changes from 1 April 2009

1 April 2009 marks the introduction of tax cuts for some taxpayers, a new tax credit, and significant changes to KiwiSaver. As well as annual changes to NZ Super rates and student loans.

Here’s a summary of how all the 1 April changes could affect you.

• Tax cuts and new tax credit
• How much could you get?
• KiwiSaver contribution changes
• NZ Super rate increases
• Student loan changes

Tax cuts and new tax credit

Changes to personal tax rates and thresholds from 1 April will mean tax cuts for some taxpayers. 

The government is also introducing a new tax credit (the “independent earner tax credit”) for people who earn between $24,000 and $48,000, and who are not entitled to working for families tax credits and not receiving a benefit, New Zealand Superannuation or a veteran’s pension.

For more information visit the Inland Revenue website.

How much could you get?

The table on the top right of this page summarises what you could receive each week from the April 2009 personal tax cuts and introduction of the independent earner tax credit (IETC).

Source: Personal Tax Cuts - Fact Sheet (PDF, 53KB)

KiwiSaver

If you are an employee enrolled in KiwiSaver, from 1 April the minimum amount you can contribute will drop to 2% of your gross pay.  Also the amount your employer has to contribute to your savings will increase to 2%.  Read more…

NZ Super

New maximum after tax rates for NZ Super (New Zealand Superannuation) apply from 1 April. For example, the Couples rate (where both partners qualify) will increase from $24,062 a year for both to $24,875. And the Single (living alone) rate will increase from $15,485 to $16,169.  

Check out the new NZ Super rates. Or if you are nearing retirement and want to know more precisely the amount you would be entitled to, contact Work and Income on 0800 552 002.

Student loan changes

From 1 April the repayment threshold (the amount you are allowed to earn before you have to start paying back your loan) will increase from $18,148 before tax to $19,084.

The student loan interest rate (for borrowers who go overseas for 184 or more consecutive days) will also increase, from 6.7% to 6.8%. No interest is charged on borrowers who live in New Zealand.

Published 26 March 2009