$5,000 bands for taxable income from $150,000 to $250,000, and
taxable income and income tax for people in each band.
The income and tax information is derived from IR3 tax returns, personal tax summaries and employer PAYE information. Taxable income for individuals is income that their personal income tax is assessed on for the March year.
with IR3 tax returns or personal tax summaries, this is income from all taxable sources less allowable deductions and losses
with negative income because of losses, they are recorded as having nil taxable income in the tables
who are non-filers, taxable income is calculated as their total PAYE gross earnings in the year ended 31 March. PAYE gross earnings can include income from employment and also taxable welfare benefits, NZ Super, earnings-related ACC, student allowances and paid parental leave.
The data for these statistics is available for download from the links below.
The taxable income distributions portray a number of "spikes" of taxable income. Below $25,000 the spikes reflect taxable transfers such as welfare benefits or NZ Super, with large numbers of people having the same taxable income. Above $25,000 the spikes typically occur at income tax thresholds. This is likely to reflect taxpayer responses to the increasing marginal rates that they face.
The years refer to income years ended 31 March. For example 2015 refers to taxable income earned in the period 1 April 2014 to 31 March 2015. Returns filed more than two years after the end of the income year are not included in the table.
The 2015 data is incomplete until after 31 March 2017 and will be updated next year. Data for the current tables was extracted from Inland Revenue systems on 26 September 2016.
The individuals included in the table are those who:
filed an IR3 tax return for that income year, even if they filed a nil return or a loss.
received a personal tax summary (PTS) for that income year
paid PAYE through an employer including recipients of taxable welfare benefits, NZ Super, earnings-related ACC, student allowances and paid parental leave.
The data includes people with part-year incomes and can also potentially include children.
The individuals not included are those:
with no taxable income, unless they also filed a return or received a PTS
who did not file a tax return or receive a PTS because their only taxable income was from interest, dividends or PIEs and was fully taxed at source.
The data in the table is based on a random sample and has been scaled up to population estimates. The sample is 2% of wage and salary earners and 10% of IR3 filers. Income tax for Individuals is calculated based on their taxable income. The table shows income tax before any allowances for tax credits such as imputation credits or Working for Families Tax Credits. Tax credits included on the IR3 or PTS have been applied (ie, the low income rebate (to 2009), independent earner tax credit (from 2010) and tax rebates on the IR3 and personal tax summary are applied) but the calculation does not include the donations, housekeeper or redundancy tax credits. For non-filers, income tax is calculated as if they had filed an annual return.
A customer with any registered activity within a specific period, or
a salary and wage earner whose only relationship with Inland Revenue is having PAYE deducted and paid on their behalf within a specific period.
Adjudication cases are classified (depending on the degree to which the position of the Commissioner of Inland Revenue was upheld) into the following five categories:
decided fully for the Commissioner
decided mostly for the Commissioner but not the full amount or grounds/reasons
decided fully for the taxpayer
decided mostly for the taxpayer but not the full amount
decision unable to be reached on the amount of assessment.
Customers in debt
Any customers with overdue debt.
A classification of customers based on their legal structure and tax obligations. These include companies, diplomatic missions, government departments, individuals, Māori authorities, partnerships, society/clubs, superannuation funds, trusts, unit trusts.
We distinguish between three types of filing channels:
e-Filing (a system for registered tax agents to send and receive information electronically)
paper-based filing, and
web (online) filing.
Geographic areas are based on Inland Revenue district offices:
Auckland: Manukau, Takapuna
Rest of the North Island: Gisborne, Hamilton, Napier, New Plymouth, Palmerston North, Rotorua, Tauranga, Wellington, Whangarei
South Island: Christchurch, Dunedin, Greymouth, Invercargill, Nelson, Timaru
"Corporates" offices for customers not allocated to a specific geographic area.
At an aggregate level district offices are combined into three major areas: Auckland, Rest of the North Island and South Island, as shown above.
GST turnover is calculated from GST returns as the sum of sales and income in the year ended 31 March.
For a two-monthly filer, this would mean the sum of gross sales on six successive GST returns, with the last return being for the period ending 31 March.
The GST tables only include GST collected or refunded by Inland Revenue. GST collected on imports by the New Zealand Custom Service is not included.
Customers not registered for GST or PAYE and not belonging to large enterprises (LE) and non-profit organisations (NPO).
This includes individual customers receiving income from business (eg, rental property, shares) but not registered for GST or PAYE.
Where there are overlaps between LE, NPO, SME and individuals, entities are allocated to the group according to the following order of priority. The priorities are:
large enterprises (LE)
non-profit organisations (NPO)
small and medium enterprises (SME)
Large enterprise (LE)
A non-individual entity which by itself or as a part of a business group has an annual turnover exceeding $100 million (calculated based on GST101 returns), or
an entity belonging to specialist segments as follows:
Liable parent (formerly non-custodial or paying)
A parent of a qualifying child who is normally required to pay child support.
Non-profit organisation (NPO)
All entities exempted from income tax and not belonging to large enterprises with the following exemption types:
society/club income < $1000
amateur sports clubs
dairy herd society
scientific and industrial research
veterinary service clubs, or
all entities except building societies and friendly societies with "other" exemption type.
Overdue child support debt
The amount of an employer's or a liable parent's liability which is in arrears (due, but not paid), together with overdue receiving carer overpayments.
Child support debt excludes debt New Zealand child support is collecting on behalf of overseas agencies.
This amount includes any penalties applied to the debt. Note that only the overdue penalties component is recognised as a debt from the Crown perspective.
Overdue debt case age
The length of time the debt has been overdue.
Overdue debt cases
A debt case is created when a due date for payment has passed without full payment being made. Other overdue debt elements may be added as they become overdue. The case will close when all overdue debt has been fully resolved.
Overdue debt element
A specific tax type and the period for which a debt is due. A customer can have one or more debt elements.
Overdue student loan debt
The amount of repayment obligation for a tax year that is overdue.
The definition applies to both residents and overseas based borrowers.
This amount includes any penalties applied to the debt.
Overdue tax debt
The amount of tax that remains unpaid after the due date for payment. Overdue tax debt includes any penalty and interest applied to the debt.
Overdue Working for Families Tax Credits debt
When recipients are paid more than their entitlement and they don't repay it by the due date a debt is created. The amount includes any penalty and interest applied to the debt.
Percentage of payments made on time
The percentage of late payments to the total number of payments per tax year.
Percentage of returns filed on time
The percentage of late filings to the total number of filings per tax year.
Receiving carer (formerly custodial parent)
A parent or carer of a qualifying child who is normally entitled to receive child support from a liable parent. They must have at least 35% care to receive child support.
Registered customers include all customers registered with Inland Revenue, either individuals or entities. Registered customers include some entities and people no longer active.
Revenue collected includes only taxes and duties collected by Inland Revenue. GST collected by the New Zealand Customs Service is excluded. Numbers are unconsolidated.
Note: The Treasury publishes monthly financial statements prepared on a consolidated basis, meaning they eliminate tax transactions between departments, state-owned enterprises and Crown entities.
Revenue collected from Liable parents (formerly non-custodial or paying)
Revenue collected from liable parents, includes all revenue collected during each tax year by Inland Revenue including payments related to other time periods.
A penalty imposed as a percentage of a tax shortfall (a deficit or understatement of tax), Shortfall penalties apply to most taxes and duties. The exceptions are student loan repayments and child support repayments by liable parents.
The law divides these actions into five categories of fault or breach, with a specified penalty rate for each category (Not taking reasonable care, Unacceptable tax position, Gross carelessness, Abusive tax position, Evasion or similar act).
Small and medium enterprise (SME)
All entities with an active relationship for GST or PAYE that do not belong to large enterprises or non-profit organisations, and
all non-individual entities without active registration for GST or PAYE not belonging to non-profit organisations.
Source deductions include:
PAYE (pay as you earn), and
ESCT (employer superannuation contribution tax), and
SSCWT (formerly known as the specified superannuation contributions withholding tax).
A tax agent prepares the annual returns of income for 10 or more customers in one of the following ways:
a practitioner carrying on a professional public practice
a person carrying on a business or occupation in which returns of income are prepared, or
a Māori Trustee.
A tax agent must be a registered Inland Revenue customer.
Taxable income for individuals is income on which their personal income tax is assessed for the March year.
For people with IR3 tax returns or Personal tax summaries, this is income from all taxable sources less allowable deductions and losses. People with negative income because of losses are recorded as having nil taxable income in the tables. For people who are non-filers, taxable income is deemed to be their total PAYE gross earnings in the year ended 31 March. PAYE gross earnings can include income from employment, and also taxable welfare benefits, New Zealand Superannuation, earnings-related ACC, student allowances, and paid parental leave.
Weighted overdue debt case age
The average age of the case elements weighted by their dollar value.
Working for Families Tax Credits
The Working for Families Tax Credits (WfFTC) consists of the following credit types:
CTC - child tax credit (was "independent family tax credit")
FTC - family tax credit (was "family support")
IWTC - in-work tax credit (was "in-work payment"), replaced child tax credit from April 2006. Customers who received child tax credit before 1 April 2006 and don't qualify for in-work tax credit may continue to receive child tax credit
MFTC - minimum family tax credit (was - guaranteed minimum family income and then family tax credit)
PTC - parental tax credit.
Note: WfFTC was collectively known as "family assistance".