More and less as the tax rules change
By Catherine Masters
5:30 AM Saturday Sep 25, 2010

Most Kiwis will get more money in their pockets from Friday, when the Government's tax cuts take effect.

But almost everything will also cost more as GST increases to 15 per cent - on top of a host of other price rises.

Commentators have described the changes as the biggest tax reforms for 25 years and a big step towards rebalancing the economy from spending to saving.

How better off you will be - if at all - depends on your income and the price rises still to come.

These include increases such as from the Emissions Trading Scheme, cuts to early childcare subsidies, a rise in Accident Compensation Corporation levies and rising food costs.

Telecom chief Paul Reynolds, who makes $5 million a year, will get $4800 a week more in his pocket from the tax cuts, but most New Zealanders will get less than $30, and the increase will be least at the lowest income levels.

Finance Minister Bill English says a family on the average household income of $76,000 will be better off by about $25 a week, and 72 per cent of taxpayers will pay a top tax rate of 17.5 per cent or less.

By Catherine Masters

From here.