Ok, so I’m not 100% sure on the math here (need to check up the tax rules) but both bulletins can’t be right here in their calculations. Using IRD’s website, currently for a minimum wage earner, they pay $2.27 in total for their tax and ACC levies. I’m trying to double check these figures quoted, but I think 3 News is wrong – it can’t be right thatminimum wage earners are taxed 40%!
ONE News: $10 – $2.10 in tax – $0.20 in ACC levies = $7.70 in the hand
3 News: $10 – $3.00 New ACC levies in April – $1.00 PAYE tax = $6.00 in the hand
Note: Trevor Mallard also said about $6 in his 3 News interview.
Trevor Mallard is of course wrong, and if TV3 relied on him, shame on them.
One News had is absolutely correct. The marginal tax rate for a FT worker on the minimum wage is 21% and the ACC levy for next year will be 2%, so a $10 gross increase will be a $7.70 net increase.