Posted in Living on One Income
Yesterday brought NZ Budget.Tax cuts will only compensate many households for the general rise in food & petrol (now $2.00 litre). Many people have moved into higher tax brackets over the last 8 years eg in 2000 when Labour increased the top marginal tax rate to 39% (up from 33%) for income bracket over 60K there were approx 5% of taxpayers in this top bracket. Currently there are approx 15%.
Labour are bringing in staggering tax cuts over the next 3 years - this has left the door wide open for National (opposition) to give substantial early tax cuts as their main carrot leading up to the election.
| Current | 15% | 21% | 33% | 39% |
| up to $9,500 | $38,000 | $60,000 | over $60,000 | |
| NEW | 12.5% | 21% | 33% | 39% |
| from Oct 2008 | $14,000 | $40,000 | $70,000 | over $70,000 |
| From April 2010 | $17,500 | $40,000 | $75,000 | over $75,000 |
| From April 2011 | $20,000 | $42,000 | $80,000 | over $80,000 |
Caro with her litter,we always have a litter of kittens in our home! 
Some of our Sheep & this years lambs; won’t tell you which are going in pot
