Did you know that the amount you can earn in Australia before you pay tax is now $18,200 (about $23,100 NZD)? That’s NZD$444 per week or NZD$2,758 a month. Who said that tax rates in Australia are higher?
In the UK, you can enjoy income of £8,105 ($15,762 at the current interbank rate) before you pay any tax, unless you’re over 65, in which case the tax free amount is £10,500 ($20,418).
Even in little old Papua New Guinea, from where I’ve recently returned, it’s Kina 7,000 (about NZ $5,000) which means the typical worker there, at Kina 3 per hour, pays no tax at all.
You know where this is going now, right? Yes, because here in New Zealand we pay tax on every $ we earn, hang on no, on every cent we earn. All suffer the same – the poor, little old ladies supplementing their NZ superannuation, part-timers earning a few hundred $ to buy treats, and now even schoolchildren have had their tax free allowance taken away.
But there is hope still for the hard worker, as it is possible to significantly reduce your tax bill without breaking the law. This is what a good, proactive accountant is for. Yours isn’t? Time to change then!