What changes on 1 April 2015?
IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.
The minimum wage will increase to $14.75 per hour. Training and starting-out minimum wages will increase to $11.80 per hour
The amount of child support some parents pay or receive may change. Inland Revenue’s new formula for calculating child support now includes both parents’ incomes and circumstances, and recognises a wider range of care.
KiwiSaver HomeStart Grant replaces the KiwiSaver First Home Deposit Subsidy. Under the HomeStart Grant, member tax credits will now be able to withdrawn from KiwiSaver savings, which will now mean first home buyers are able to withdraw amounts from their KiwiSaver savings (except for the $1,000 kick-start). It should also be easier for more people to buy a newly built home as the grant for newly built homes has increased from the previous level of the First Home Deposit Subsidy. House price caps which determine the eligibility for HomeStart grants and Welcome Home loans have also increased.
Student Loan Living Cost
The maximum weekly amount available will increase to $176.86 per week.
To obtain the maximum allowance you must not earn more than $211.96 a week before tax (and you must meet all the other eligibility criteria). If you are aged 18-23 and have no children, the combined taxable income of both your parents in the last financial year must be under:
- $84,163.86 before tax (if you are living at home while studying)
- $91,448.30 before tax (if you are living away from home to study)
If you have a partner and children, your own and your partner’s combined taxable income needs to be under $882.98 a week before tax. The allowance will reduce for every cent earned above this.
ACC’s levy reductions
ACC is continuing to deliver on levy reductions. This year the average levy paid by employers and self-employed people in Work Account levies will fall to 90 cents per $100 of liable earnings, down from 95 cents.