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MatthewD

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#315726 10-Aug-2024 09:22
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Hi Team,


Many weeks ago I used an online calculator to determine how much we would get with the tax relief. The money that was calculated was $45.65 for both me and my wife, this is with us having two kids over three and the incomes are $71760 and $37538. You can punch these figures into the calculator here... https://budget.govt.nz/taxcalculator/


Now the problem is, when we received our increases, I received $16.45, and my wife... who works school hours, she got $2.16.


So we are well short of the mark. To be clear in the last 12 months our rates bill went up over $700 and we are now incurring RUC for the electric vehicle which comes to around $650 per year. Those two increases alone come to around $26 per week.


Now the interesting thing is... if I go back to the calculator and say that we have no children, then the amount we receives goes down to $37.09.


So this raises 2 questions...



  • Why is the amount lower if you don't have children and how are parents receiving the extra parent amount?

  • Why is the amount we are receiving about half of the childless amount when we have kids?

  • If the new tax changes only have to do with adjusting tax brackets... why does having kids make a difference at all?


If anyone can help shed light on what's going on here I would appreciate it.


Matt.


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JimmyH
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  #3270162 10-Aug-2024 09:30
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Presumably it's because of Working For Families tax credits?




RunningMan
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  #3270163 10-Aug-2024 09:33
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Is the $16 for a fornightly pay period entirely after the start date? It's still less than a fortnight since they were introduced so unless you are both paid partially in advance you won't have hit a full fortnight yet.


cddt
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  #3270164 10-Aug-2024 09:41
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https://budget.govt.nz/budget/2024/at-a-glance/tax-relief.htm

 

Possibly "FamilyBoost" which seems to be some kind of scheme where you have to actively claim a rebate for childcare costs: https://www.ird.govt.nz/familyboost 

 

According to the calculator we should get $40.10 / fortnight, but earn too much for "FamilyBoost".

 

Frustrating how they tax you as an individual, but any benefit is assessed against a household. Even worse for student allowance, where it's determined by your parents income, even if you don't live with them. 





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Qazzy03
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  #3270165 10-Aug-2024 09:41
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1) Why people with kids get more is the Working For Families tax credits.

 

“Tax relief will be delivered through a combination of adjustments to tax brackets, increases in tax credits for those on modest incomes, tax rebates for childcare costs and increases to Working for Families payments.
https://www.national.org.nz/national_will_deliver_meaningful_tax_relief

The calculator you are using is bundling more than tax bracket changes. I'm not sure if the calculator is taking into tax rebates for childcare costs. 

 

2) RunningMan is 100% correct here, the Nats used "Fortnightly saving" to make the number go big. 

 

RunningMan:

 

Is the $16 for a fornightly pay period entirely after the start date? It's still less than a fortnight since they were introduced so unless you are both paid partially in advance you won't have hit a full fortnight yet.

 


Rickles
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  #3270175 10-Aug-2024 10:16
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Wife and I get $2.15 per week ... superannuants, mind.

 

Oh, Wellington Rates demand shows over 21% increase this rating year!

 

Insurances (contents and house) .... 100% increase.


Qazzy03
478 posts

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  #3270179 10-Aug-2024 10:29
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Rickles:

 

Wife and I get $2.15 per week ... superannuants, mind.

 

 

Off the top of my head, Student Allowance got the same rate of $2.15 p/w. 

 

Still better than being on a main benefit, their gross rates were changed (decreased) to keep the net rate of payment the same.
So less total taxable income but no net increase.
Before anyone says people on a main benefit don't pay tax, MSD does pay tax to IR. 


freitasm
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  #3270181 10-Aug-2024 10:33
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RunningMan:

 

Is the $16 for a fornightly pay period entirely after the start date? It's still less than a fortnight since they were introduced so unless you are both paid partially in advance you won't have hit a full fortnight yet.

 

 

It doesn't matter. You get it when you are paid, not when you worked.





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Linux
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  #3270186 10-Aug-2024 10:47
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I got my rates bill last week for 2024 - 2025 it has gone up over $220 per quarter

My tax break is now gone + more

Oblivian
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  #3270239 10-Aug-2024 11:06
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It was getting clearer and clearer from the 100day start that unless you were in the right bracket and had lots of kids it was probably only ever a carrot dangle for ticks.

They had to keep a promise. This is the result. Not even a coffee covered for most on the grind.

k1w1k1d
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  #3270253 10-Aug-2024 11:44
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+$15.92/week. Single income, no kids.


RunningMan
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  #3270257 10-Aug-2024 11:50
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freitasm:

 

It doesn't matter. You get it when you are paid, not when you worked.

 

 

I stand corrected. For reference from https://www.ird.govt.nz/pages/campaigns/personal-income-tax-threshold-changes 

 

Use the PAYE tax tables that apply on the day the PAYE income payment is made to your employees


tweake
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  #3270262 10-Aug-2024 11:59
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Oblivian: It was getting clearer and clearer from the 100day start that unless you were in the right bracket and had lots of kids it was probably only ever a carrot dangle for ticks.

They had to keep a promise. This is the result. Not even a coffee covered for most on the grind.

 

and it was pushed as relief from the living cost crisis yet the tax break is sloped the wrong way, the lower brackets get less tax break that higher earners. but then again, you vote for change, change is what you get.


Qazzy03
478 posts

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  #3270264 10-Aug-2024 12:09
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RunningMan:

 

I stand corrected. 

 

 

Me too, I was working off period worked.
So I was wrong as well. 


mudguard
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  #3270311 10-Aug-2024 15:38
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I haven't seen in yet. I get paid monthly so will check on the 20th I guess!


kotuku4
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  #3270348 10-Aug-2024 17:43
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I received exactly the same as previous fortnightly pays. No payslip issued as yet. I will be following up.




:)


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