The budget for 2017 was passed by Parliament on 26th May 2017. The Budget bill contains changes to tax thresholds and to Working for Families. The changes will come into effect on 1 April 2018.
The changes are given below:
Income tax thresholds: Income tax threshold increases the $14,000 to $22,000, and the $48,000 threshold to $52,000. This provides a tax reduction of $11 a week to people earning $22,000 or more rising to $20 per week for anyone earning $52,000 or more.
Family Tax Credit: The Family Tax Credit rates increases for the first child under 16 by $9 a week, and for each subsequent child under 16 by between $18 and $27 a week. Also increases the abatement rate to 25% and reduces the abatement threshold to $35,000.
Housing supplement: The accommodation supplement goes up by between $25 and $75 a week for a two person household and for larger households by between $40 and $80 a week.
Accommodation Facilities: Accommodation Benefit Increases weekly payments by up to $20 for students to reflect increasing housing costs for students.
Rail: $548 million investment in the rail network with KiwiRail, including $98 million for the Wellington Commuter Rail Network.
Economy: The Treasury forecasts economic growth of 3.1% in the June 2017 year to peak at 3.8% in 2019, before easing back.
Education: Invest $1.1 billion for schools and early childhood centres, roll growth and demand, and an increase in operational grant funding for schools.
Independent Earner Tax Credit: Independent Earner Tax Credit will be discontinued. Those claiming it are fully compensated by the tax threshold adjustments.