Most Kiwis will have a few dollars more tomorrow
2:45 PM Thursday Sep 30, 2010

The Government's "GST-income tax switch" will from tomorrow leave the vast majority of income earners with at least a few more dollars in their pockets each week.

Income tax cuts are across the board and will be implemented alongside an increase in GST from 12.5 to 15 per cent.

Finance Minister Bill English said the reforms, the most significant in nearly 25 years, would at all taxable levels more than offset the GST increases, and that "proportionate increases" in disposable income would be the same for earners across the board.

Those using the taxguide.govt.nz calculator will find a $30,000 wage equates to a net weekly gain of $5.29, while someone on $120,000 will be $52.78 better off.

The changes will come as a boost for families and help strengthen economic growth, English said. "This has never been a lolly scramble.

More here and

How tomorrow's tax changes will affect you.