Anything less than $49/week isn’t tax relief, it’s shortchanging New Zealanders

Reacting to Prime Minister Christopher Luxon’s pre-budget speech today, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Christopher Luxon is right to point out that inflation over the last 14 has pushed New Zealanders into higher income tax brackets so that they are paying more of their wages in tax even when they are not better off.

“Successive governments’ failure to ensure tax brackets keep pace with inflation means that workers earning an average income of $66,196 are paying $49 more in tax each and every week than they would have done had income tax brackets been adjusted annually.

“Anything up to $49 a week for the average worker isn’t really tax relief, it’s shortchanging New Zealanders by only partially winding back the effects of 14 years of inflation on tax rates. If the Government is serious about delivering tax relief, it needs to go further.”