Beginning on 31 July, hardworking New Zealanders will see personal income tax relief for the first time in fourteen years and the excitement is building.
We made a promise to Kiwis that they would get to keep more of what they earn under a National Government, and I am incredibly proud that we have kept that commitment to New Zealanders.
Since it went live on Budget Day, 540,000 Kiwis have jumped onto our tax calculator to see how much better off they’ll be thanks to our tax relief plan – the same one we promised during last year’s election.
This massive response shows how keen hardworking New Zealanders are to know how much more of their earnings they’ll be taking home each week.
Personal income tax thresholds will rise from $14,000 to $15,600, from $48,000 to $53,500, and from $70,000 to $78,100.
Tax changes also include an increase in the in-work tax credit and an expansion of the independent earner tax credit, in addition to the already-launched FamilyBoost payment which will see eligible families get up to $150 every fortnight for childcare.
Altogether, these changes will return an extra $3.7 billion per year to the pockets of hardworking New Zealanders.
Approximately 727,000 households are projected to receive a minimum of $75 more per fortnight, with 187,000 households benefiting by at least $100 more per fortnight.

This is genuinely meaningful to lower and middle-income families that have been battling through a cost-of-living crisis over the past few years.
It means more money for parents to keep the kitchen shelves stocked for the week ahead. It means more money for things like swimming lessons for the kids, or the unexpected bill for the kids to go on a school trip to the zoo.

It also makes it easier to fill up the car on the way home from work – particularly for Aucklanders who will also benefit from the removal of the Auckland Regional Fuel Tax.
The rising number of visitors to our tax calculator reflects Kiwis’ keen interest in understanding how the Budget will personally benefit them and their families through the savings we’ve achieved and the tax relief we’re implementing.

Best of all, our tax plan is responsibly paid for through savings and new initiatives to generate revenue. There will be no need for extra borrowing, and it will not push up inflation.
We’ve worked hard to save billions for taxpayers by cutting wasteful projects and making sure investments go to frontline services. Better healthcare so that Kiwis can get the timely treatment they need. Better schools so that our children can succeed and lead the lives they want. And more money for Police and Corrections so that we can go after criminals and keep our streets safer.

Investing in frontline services such as these is part of our plan to get New Zealand back on track.
Our government is committed to rebuilding the economy and driving growth in New Zealand. Our tax package delivers just that, and we encourage all New Zealanders to head to budget.govt.nz/tax calculator to see how much they benefit. -Hon Christopher Luxon, Prime Minister of New Zealand