National pledges to reverse tax bracket creep

Christopher Luxon has pledged to reverse the tax bracket creep of the last four years by moving each of the lower thresholds to what it would have been in adjusted for inflation. The 6% inflation we currently have is pushing more and more Kiwis into higher tax brackets.

I’ve done a table below showing how much less tax people would pay in absolute and relative terms at each income level.

The greatest percentage reduction in tax paid would be at $60,000 where inflation adjustment would see your tax bill drop 7.5%. Those on $50,000 (just above the fulltime minimum wage) would get a 4.5% reduction. Those on $150,000 get a 2.7% reduction.

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