Extra cash for many, as tax cuts take effect

Published: 12:24PM Tuesday March 31, 2009 Source: ONE News

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Extra cash on payday is on the way for wage and salary earners from Wednesday, as the government's new tax cuts come into effect.

The tax cuts will give most workers somewhere between $10 and $45 in the hand extra a week.

In total, 1.5 million New Zealanders will get a share of the billion dollar tax cut boost.

People earning between $25,000 and $44,000 a year will now receive a new independent tax credit, which means an extra $10 in the pocket a week.

For those earning between $50,000 and $70,000 they will get a tax cut of $18.46 a week, with those on $100,000 receiving $24.23.

Changes to KiwiSaver are also due to take effect, as well as new tax breaks for small and medium businesses.

Changes to KiwiSaver will see the $40 a year subsidy gone completely with the minimum level of employee contributions dropping from 4% to 2%.

The government's describing the changes as a "shot in the arm" for the economy as it battles a deepening recession.