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It's time to prepare for October 1 changes
30 September 2010
Tax cuts and the GST increase will affect all Kiwis differently, so everyone should reassess their household budgets to work out how much extra they’ll have and how they’ll spend it.
From October 1 all salary and wage earners will receive a tax cut and GST will rise 2.5% to 15%. NZ Super will also increase.
Sorted.org.nz Manager David Kneebone says everyone’s situation is different so it’s important that Kiwis reassess their budgets to work out exactly how they will be affected.
“For example, a single person paying $150 a week in rent with a salary of $36,000 will have an extra $20.19 per week after the tax cut. They will pay around $9.55 a week in additional GST, leaving them with an extra $10.64 each week.
“By comparison a family of four, with weekly mortgage payments of $500 and where one parent earns $80,000 and the other earns $30,000, will have an extra $66 a week after the tax cut. They will pay around $25 more each weekly in GST, leaving them with $41 extra. Over the course of a year they will be $2,148 better off.
“You can see the impact that the changes will have varies greatly on different household budgets,” he says.
Mr Kneebone says while the increase in GST at 2.5% may seem small it’s worth thinking about, because what may seem like small increases can add up. And it’s important to think about all financial commitments – hire purchase payments, lay-bys and gym memberships can be easily overlooked.
“We know changes are coming, so be prepared for them by taking a fresh look at your budget and your spending. Sorted.org.nz has a Budget calculator and Money tracker that makes this easy,” Mr Kneebone says.
For more information contact:
Meredith Keys
(027) 203 3172
meerdith@sputnik.co.nz
