Budget 2024 taxation changes

The core of the 2024 New Zealand Budget is tax relief for working families and restrained public spending.

Households anxious about cost of living and job security make cautious consumers. Businesses coping with rising overheads and shrinking retail spends tend to tighten up to maintain cash flow. Changes to the bright-line test and interest deductibility made it easier for property investors but removal of the First Home Grant makes it harder for first home buyers. If we can cool inflation during the second half of the year, interest rates might cool too.  

It is hoped that the boosts to the back pocket and to families will inject a bit of optimism in the meantime.

The Back Pocket Boost

Changes to personal income tax thresholds take effect from 31 July:

This is designed to give New Zealanders some breathing space after several years where higher wages dragged them into higher tax brackets due to inflation.

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