New Zealand Microsimulation Model: Policy Changes Log
This document outlines the key changes in New Zealand's tax and transfer policies relevant to the microsimulation model, serving as a "changelog" for the business rules. Each section details the policy, its parameters, and how they have evolved over different tax years.
Income Tax Rates and Thresholds
| Tax Year | Income Bracket (NZD) | Tax Rate (%) | Notes |
|---|---|---|---|
| 2022-2023 | 0 - 14,000 | 10.5 | |
| 14,001 - 48,000 | 17.5 | ||
| 48,001 - 70,000 | 30 | ||
| 70,001 - 180,000 | 33 | ||
| 180,001+ | 39 | ||
| 2024-2025 | 0 - 15,600 | 10.5 | Thresholds raised 1 Aug 2024 |
| 15,601 - 53,500 | 17.5 | ||
| 53,501 - 78,100 | 30 | ||
| 78,101 - 180,000 | 33 | ||
| 180,001+ | 39 |
Working for Families (WFF) Abatement Thresholds
| Tax Year | Abatement Threshold (NZD) | Abatement Rate (%) | Notes |
|---|---|---|---|
| 2022-2023 | 42,700 | 25 | |
| 2024-2025 | 42,700 | 27 | Rate increased; second tier $80k |
In-Work Tax Credit (IWTC) Entitlements
| Tax Year | Entitlement per Child (NZD/week) | Notes |
|---|---|---|
| 2022-2023 | 72.50 | |
| 2024-2025 | 97.50 |
FamilyBoost Childcare Tax Credit
| Tax Year | Maximum Credit (NZD/week) | Abatement Details | Notes |
|---|---|---|---|
| 2024-2025 | 75.00 | 25% of childcare costs up to $75/week; abates 25c per $1 over $140k, zero at $180k | New policy |
Independent Earner Tax Credit (IETC)
| Tax Year | Maximum Credit (NZD) | Income Range (NZD) | Abatement Details | Notes |
|---|---|---|---|---|
| 2022-2023 | 520 | 24,000 - 48,000 | Abates by 13 cents for every dollar earned over $44,000 | |
| 2024-2025 | 520 | 24,000 - 70,000 | Abates by 13 cents for every dollar earned over $66,000 |