Everyone likes more money in their back pocket, and we’re about to get a few extra dollars to try and counteract the effect of inflation.
The coalition government recently announced in their budget that there would be a shift in the tax rate thresholds for individuals from 31 July 2024. Not a moment too soon.
For years we’ve been suffering the effect of inflation while the tax rate thresholds have stubbornly held firm. The result of this is effectively an increase in tax because while our wages and salaries have also increased through inflation, the tax rate thresholds have stayed in place, meaning we pay more tax! Finally some relief.
The changes in thresholds look like this:
There are some other more targeted tax breaks being introduced also. An increase to Working for Families Tax Credits and an increase to the eligibility cap for the Independent Earner Tax Credit among them.
The flow-on effects of these rate changes will influence other things such as PAYE thresholds, FBT calculations, employer superannuation contribution tax, and you may need to reconsider your nominated RWT rates advised to the bank.
How much you will save in tax of course depends on how much you earn. If you have any questions about how you may be affected, contact your Client Services Manager at GRA (or if you are not yet a client, book a meeting to see how we can help – the first meeting is free for new clients).
I would like to say thank you for the opportunity for allowing me to come to the property school at Gilligan Rowe + Associates. Im in my early stages of becoming a property investor in New Zealand and to able to come to the property school has enabled to me gain very valuable information and knowledge which will help me be successful in property investing. The property school itself is one like no other because there is so much value given and from experts that practise what they are teaching. This in property school was one of the main highlights because being able to meet experts through the property school was my first time and gave me more confidence in general about property investment. Having combined reading the books (Property 101, Tax structures 101) at home and attending property school, the breath of valuable information and knowledge I have attained is substantial. - Tesfalidet, December 2019
Investing in residential property?
If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.
Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.