The Government has announced the 2024 Budget will be delivered on May 30.
This is likely when Kiwis will get to see the details of the tax cuts they will receive from the Coalition Government.
At last year’s Half Year Economic and Fiscal Update and mini-Budget, Finance Minister Nicola Willis re-committed to “responsibly deliver income relief measures in next year’s Budget”.
Willis on Monday announced the Budget Policy Statement, which sets out the priorities for the Budget, will be released on March 27.
In a statement, she said plans to “deliver tax relief to hard-working New Zealanders, rebuild business confidence and restore the Crown’s finances to order” would be revealed in the Budget on May 30.
“The last Government’s mismanagement of the economy and the Crown’s finances has left a legacy of high inflation, reduced spending power for New Zealanders and wasteful expenditure,” she said.
“This coalition Government is focusing on putting more money in people’s pockets, delivering better value for public money and enabling private enterprise. Undoing the damage done by Labour will take time, but New Zealanders can be confident that the country is now on the right track.”
The Coalition parties agreed during negotiations last year to progress most of National’s tax plan, excluding the foreign buyers’ tax. The proposed income tax reductions were set down to come into force on July 1, 2024.
The National Party’s ‘Back Pocket Boost’ included changes to income tax thresholds to account for inflation. Under the proposed plan, the $14,000 threshold would change to $15,600. The $48,000 threshold would change to $53,500 and the $70,000 threshold would change to $78,100.
The party received significant criticism throughout the election campaign for assumptions it used when designing the tax plan. Economists argued the foreign buyers’ tax (which is now removed) wouldn’t generate the amount of money National expected, while the Opposition is watching to see what reprioritisations the Government makes to find savings in the system.