Tax has again become an election issue, more than 12 months before voters go to the polls. Part of the current debate centres around tax brackets and whether the current cut-off points are fair.
New Zealand’s income tax system uses progressive rates. Higher slices of income are taxed at higher rates. Every dollar earned up to NZ$14,000 is taxed at 10.5%. Income above that level is progressively taxed higher until the final tax rate of 39% applies to every dollar earned over $180,000.
