Tax Freedom Day Delayed in New Zealand

May 6, 2015 Taxation in New Zealand

WELLINGTON – The slow rise of incomes in New Zealand is pushing Tax Freedom Day further into the year.

According to new information released by the accounting firm Staples Rodway, in New Zealand Tax Freedom Day will fall on May 7th, two days later than in the previous year.

The delay in the date of Tax Freedom Day has been attributed to the country’s recovery from the global financial crisis several years ago, as now many businesses are seeing a strong recovery, and a subsequent rise in the income taxes paid.

Further, the recovery is leading to a pickup in salary increases paid to individuals, which in turn is raising the amount of tax paid out for the year.

It was also noted that the increase in the salaries earned by individuals is highlighting the problem of bracket creep, whereby salary increases are rising faster than tax brackets, pushing individuals into higher income brackets, despite the fact that their buying power is not rising in real terms.

Photo By: Summer Skyes 11