NZ cuts tax, but Aussies still earn more - NZIER
Personal tax cuts, which take effect from tomorrow, will boost the take home pay for New Zealand workers, but they won't alter the fact that Australian workers are better off, the NZIER says.New Zealand's new personal tax regime is less onerous for high i
NBR Staff
Thu, 30 Sep 2010
Personal tax cuts, which take effect from tomorrow, will boost the take home pay for New Zealand workers, but they won’t alter the fact that Australian workers are better off, the NZIER says.
New Zealand’s new personal tax regime is less onerous for high income earners than Australia’s, the institute said.
But as Australia’s average weekly wage is about 40% higher, a typical family is much better off, if disposable income is the measure, it said.
The NZIER model family’s after tax income is 33% higher in Australia compared with New Zealand.
“The personal income tax cuts will not be enough to stem the migration of Kiwis to Australia – incomes would also need to rise,” the NZIER said.
“The tax changes are a step in the right direction, but need to be seen as part of a broader package of policies to stimulate and support productivity growth,” the institute said.
Income differences mean a model family is still better off in Australia to the tune of $18,000 a year.
NZIER has released an updated personal income tax calculator that compares New Zealand and Australian take home pay.
NBR Staff
Thu, 30 Sep 2010
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.