Christopher Luxon
National Party leader
Nicola Willis and I have just announced National’s tax relief policy.
We’re fighting back for the squeezed middle — New Zealanders who are working hard but watching their incomes being eaten by high taxes and rising costs.
This is a major part of our plan to rebuild the economy and reduce the cost of living.
Under National’s Back Pocket Boost, New Zealanders will be better off by:
- Up to $250 more a fortnight for an average-income family with young children
- Up to $100 more a fortnight for an average-income household with no children
- Up to $20 more a fortnight for a full-time minimum-wage earner, and lowering the tax they pay for additional hours worked
- Up to $26 more a fortnight for a superannuitant couple.
Here’s the bottom line: a family on an average income of $120,000 will be up to $250 a fortnight better off.
Child-free households on an average income will have an extra $100 in their pockets every fortnight.
It’s about time you got relief from Labour’s cost-of-living crisis, and National will deliver it.
Our changes to the personal income tax brackets are carefully targeted, ensuring that hardworking New Zealanders benefit the most.
It’s not fair that someone on the minimum wage comes close to the 30% tax rate for additional hours worked. Under our plan, that same worker will only pay 17.5% tax on extra hours.
Our tax relief will take effect from 1 July 2024 and will be achieved by:
- Shifting income tax brackets to compensate for inflation
- Expanding tax credits to reach more modest income earners
- Introducing the FamilyBoost childcare tax credit
- Increasing Working for Families tax credits for working families (from 1 April 2024).
For all the details on how the Back Pocket Boost will affect you, I encourage you to read more here.
Thank you for standing with us in these critical times.
Together, we can get our country back on track.