Tax Freedom Day Arrives in New Zealand

May 7, 2018 Taxation in New Zealand

tax freedom dayWELLINGTON – New Zealanders now have 239 to earn all the tax-free money they can for the year.

Today, May 5th, is the day that New Zealanders will have earned enough to pay their annual tax bills, and can start working for themselves.

The date of Tax Freedom Day was calculated by the accounting firm Staples Rodway.

Tax Freedom Day is a theoretical measure used to compare the tax obligations owed in a country year to year, and the tax obligations between countries.

The measure is a convenient measure, as it takes into account the total tax burden faced by taxpayers, even as tax rules change or new taxes are introduced.

The date is calculated by comparing the total GDP of a country, against the total tax take for the government.

In New Zealand in 2018, the date of Tax Freedom Day came after 113 days spent to pay central government taxes and another 13 days for local authorities’ taxes and levies.

Tax Freedom Day comes later than it did last year, mainly due to increased spending and GST revenues, and bracket-creep, whereby small increments to individuals’ salaries result in people being pushed into higher tax brackets.