Asia & Pacific

Some New Zealanders Paying 50 Percent Tax, Treasury Reveals

A new analysis reveals some income earners and and many single parents are effectively paying half their income in tax, and there’s no way to fix it.
Some New Zealanders Paying 50 Percent Tax, Treasury Reveals
A New Zealand one-hundred dollar banknote, an Australian five dollar banknote and New Zealand coins are arranged for a photo in Auckland, New Zealand on April 7, 2015. Hannah Peters/Getty Images
Rex Widerstrom
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A Treasury analysis has revealed that 6 percent of New Zealanders and 30 percent of single parents face effective tax rates of more than 50 percent. Some could even have effective marginal tax rates of more than 100 percent.

Effective marginal tax rates (EMTRs) measure how much of each extra dollar a person earns is lost due to higher tax rates or deductions from government supports, such as the accommodation supplement.

Rex Widerstrom
Rex Widerstrom
Author
Rex Widerstrom is a New Zealand-based reporter with over 40 years of experience in media, including radio and print. He is currently a presenter for Hutt Radio.