Thursday, June 25, 2020
The New Zealand Government has announced that it will provide tax relief for low-income earners by waiving nominal tax debts.
For the 2019/20 income tax year, tax payable up to NZD200 (USD128.5) will be written off. The usual threshold for writing off tax is NZD50.
"Fewer people will have tax bills to pay this year," said Revenue Minister Stuart Nash. "Inland Revenue's end of year automatic income tax calculation process for individuals is currently underway and is expected to run until early July. It is the annual wash up which results in people either having tax to pay or receiving a refund."
"Increasing the write-off threshold will reduce tax bills for approximately 149,000 taxpayers. Writing off those amounts of tax may not seem huge to everyone, but it can be significant for someone experiencing financial stress."
For following tax years, the threshold will revert to the NZD50 limit.