The new Independent Earner Tax Credit (IETC) of up to $10 each week is starting on April 9 in New Zealand.
The tax credit generally applies to middle-income earners. You will be eligible for the IETC if are a New Zealand tax resident and you meet all of these criteria:
- Your annual income is $24,000 $48,000
- You or your partner are not entitled to working for families tax credits or an overseas equivalent
- You aren't receiving an income-tested benefit, NZ Super, a Veteran's Pension or an overseas equivalent of any of these.
If you're earning between $24,000 and $44,000 on April 1st you'll start getting a tax credit of $520 per year or $10 per week. If you're earning between $44,001 and $48k your Independent Earners Tax Credit entitlement will decrease by 13 cents for each dollar you're earning over $44k.
Find out more aboout income tax payers.