New Zealand announces big income tax cuts
The New Zealand Government has unveiled what it says is the biggest overhaul to the New Zealand tax system in 25 years. And it's promising the "vast majority" of New Zealanders will be better off as a result. All personal tax rates will be cut from 1st October, with the top rate levied on income over $70,000 per year coming down from 38% to 33%. Average income earners, which account for 70% of tax payers will enjoy a top tax rate of just 17.5%. GST, currently 12.5% is to increase to 15%. Compared to the UK, with a top rate of tax of 50%, New Zealand now has one of the lowest personal tax rates in the world.