The budget for 2017 was passed by Parliament on 26^th 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.