- Income Tax
Reductions in the top rates of income tax to 25% for incomes over $38,000
Reduction in the lower rate of income tax to 15% for incomes up to $38,000.
Continue to improve New Zealand’s efficient broad-based low rate tax regime
The 15% tax rate, which now applies to income below $9,500 will extend to $12,500. For income between $12,500 and $50,000, the tax rate will be 19%. Income between $50,000 and $100,000 will be taxed at 33%.
Income above $100,000 will continue to be taxed at 39%.
Cut business tax to 30c
Introduce a new tax deduction for pre-school childcare costs to ease the financial pressures on parents, particularly on second-income earners and employed sole parents
National will recognise as tax deductible the pre-school childcare costs of working parents up to $5,000 per child. Costs will be deductible at 33% of out-of-pocket childcare costs
Remain opposed to any increase in general taxation
Following the achievement of intermediate growth goals and focused social expenditure aim to reduce personal income tax levels
Make the first $3000 of earned income tax-free, as part of the Working For Families package
Increase the other tax thresholds by $5000 to offset the increase in inflation
Further lower tax rates, as economic conditions allow, with the goal of establishing a tax rate that is comparatively flat
Reduce company tax to 30 cents in the dollar over the next three years
Increase the tax rebate on donations from individuals to charitable organisations from $630 p.a. to $6,300 p.a.