Tax Threshold Changes 31 July 2024
From 31 July 2024, all income received will be taxed as per the new tax thresholds in the table below:
Your payroll provider should update the new tax rates automatically and be applied from payment dates of 31 July 2024 or later. It is important to note that your employees will have a higher take home pay from this date onwards. You may need to update any automatic payments setup for wages.
For more detailed information, please click the link below:
Independent Earner Tax Credit & ME Tax Code
The Independent Earner Tax Credit (IETC) eligibility threshold has been updated to between $24,000 to $70,000 per annum (previously between $24,000 to $48,000). Eligible employees may be able to change to the ME Tax Code.
You may want to inform any employees you have that fit the criteria, as they could receive more each pay run (alternatively they may get a tax refund when they do their tax return). Please see links below to the IRD criteria and the updated IR330 form which details the eligibility criteria: