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New Zealand Super increase in rates and impact on your tax rate

Changes to NZ Superannuation income payment rates and impact on your tax rates

New Zealand Superannuation income is adjusted on the 1st April each year based on a formula that is linked to inflation (through the average wage mechanism).  With inflation at high levels this year, the jump in NZ Super is quite big.

The important thing is - if you are earning income from other sources (working, investments, taxable annuities), remember to check your overall gross taxable income.  This increase in New Zealand Super may push you into the next tax bracket, which will change your marginal tax rate.

The relevant tax brackets are as follows:
Income from $14,000 - $48,000 marginal tax rate 17.50%
Income from $48,000 to $70,000 marginal tax rate 30.00%
Income from $70,000 to $180,000 marginal tax rate 33.00%
Income over $180,000 marginal tax rate 39.00%

If your earnings from investments pushes you over this level this will impact your marginal tax rate, but may not impact on your PIR rate (the rules for PIR rates are different).  Check with your Moneyworks financial adviser or your accountant, or look at the IRD PIR rules. https://www.ird.govt.nz/roles/...The new Pre-Tax NZ super rates for an individual are:
Single Living Alone - $27,988.48
Single Living with others - $25,745.20
Married person - $21,250.32



 

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