Income thresholds
As part of the 2024 New Zealand budget, new personal income tax thresholds apply from 31 July 2024. These will apply automatically where the Date of payment is 31 July 2024 or later.
Current income range | Tax rates | New income range from 31 July 2024 | Tax rates |
|---|---|---|---|
$0 - $14,000 | 10.5% | $0 - $15,600 | 10.5% |
$14,001 - $48,000 | 17.5% | $15,601 - $53,500 | 17.5% |
$48,001 - $70,000 | 30% | $53,501 - $78,100 | 30% |
$70,001 - $180,000 | 33% | $78101 - $180,000 | 33% |
$180,001 and above | 39% | $180,001 and above | 39% |
Independent earner tax credit (IETC) thresholds
From 31 July 2024, the thresholds for the IETC change. These will apply automatically where the Date of payment is 31 July 2024 or later.
Threshold | Current threshold | New threshold from 31 July 2024 |
Lower Threshold | $24,000 | $24,000 |
Upper Threshold | $48,000 | $70,000 |
Abatement starts | $44,000 | $66,000 |
ACC rates and thresholds
MYOB Business will automatically apply these ACC changes in your first pay where the Date of payment is 1 April 2024 or later – so there's nothing you need to do.
If you have employees on the STC or STC SL tax codes with a custom ACC earner levy rate, it'll be automatically updated to 1.6%.
2023-24 tax year value | 2024-25 tax year value | |
|---|---|---|
ACC earner levy rate | 1.53% | 1.6% |
ACC income maximum | $139,384.00 | $142,283.00 |
Maximum ACC earner levy | $2,132.57 | $2,276.52 |
Student loan threshold
MYOB Business will automatically apply the new threshold in your first pay where the Date of payment is 1 April 2024 or later – so there's nothing you need to do.
Frequency | 2023-24 tax year value | 2024-25 tax year value |
|---|---|---|
Annual threshold | $22,828 | $24,128 |
Monthly pay period (threshold divided by 12) | $1,902.33 | $2,010.67 |
Fortnightly pay period (threshold divided by 26) | $878 | $928 |
Weekly pay period (threshold divided by 52) | $439 | $464 |
Minimum wage
If you pay an employee the minimum wage, you'll need to update their pay rate before their first pay from 1 April 2024. To learn more about the minimum wage increase, visit the Ministry of Business, Innovation & Employment and business.govt.nz
2023-24 tax year minimum hourly rate | 2024-25 tax year minimum hourly rate | |
|---|---|---|
Adults | $22.70 | $23.15 |
Training and start-out | $18.16 | $18.52 |