2008 media releases
Tax credits for people made redundant
2 April 2008
A simpler, fairer system of tax on redundancy payments takes effect this week.
People who receive redundancy payments will be entitled to claim a tax credit of six cents in the dollar up to a maximum of $3,600. Anyone who has been made redundant since 1 December 2006 is eligible to claim from 1 April 2008.
Group Manager Assistance David Udy said the tax credit benefits anyone who has been made redundant.
''In some cases, people have been pushed into a higher tax bracket by the lump sum redundancy payment.
"These payments have incurred a higher rate of tax, without taking into consideration the recipient's personal tax rates before and after redundancy,'' said Mr Udy.
"This change makes the taxation fairer.''
This rebate is standalone, and not related to any other payments or end-of-year square-ups, Mr Udy said. ''People can claim at any time during the year.''
To claim the tax credit, customers will need to complete the claim form (IR524), and provide documentation that clearly shows the amount of the redundancy payment received. This could include a letter from their employer, a payslip or a calculation sheet provided by the employer.
More information, including the application form, is available at our Redundancy tax credit section.
The form can also be requested by calling 0800 257 773.
Ends
For more information:
Adrienne Perry
Senior Media Advisor
(04) 890 1698
Other media releases this year
- Accountant sentenced for tax evasion
- Invercargill accountant jailed for tax evasion
- Dairy owner sentenced for hiding half a million
- Tauranga court jails man for tax evasion
- Most Working for Families recipients not charged interest for overpayments
- Former Kaikohe farm manager jailed for tax evasion
- Auckland plasterer jailed for tax evasion
- New callback service rolled out across Call Centre
- Former employee sentenced
- KiwiSaver report released
- Inland Revenue expands e-services
- Do-it-yourself tax refunds
- Employers reminded about new tax rates
- Former Inland Revenue employee pleads guilty to corruption
- Sentencing strong message for contractors
- Accountant jailed for defrauding clients and Inland Revenue
- Inland Revenue pilots callback system to help customers
- Inland Revenue proposes changes to company tax return
- Agricultural contractor sentenced
- Jail for horticultural student
- Tax fraud results in jail term
- Thousands apply for student loan amnesty
- Early Working for Families Tax Credits payments
- Inland Revenue wins People's Choice NetGuide web award for second time
- Waikato couple sentenced for tax evasion
- Inland Revenue warns about income diversion
- Report of investigation of an error in tax revenue numbers
- R&D tax credit goes live
- Student Loan amnesty - last chance to apply
- Revised financial statements
- Tax advice for investors in failed finance companies
- Tax advice for property investors
- Provisional tax gets easier
- Early Working for Families Tax Credits payments
- IRD numbers about to get longer
- Tax authorities work together to stop international tax evasion
- Inland Revenue helps drought-affected farmers
- IRD numbers available at NZ Post and AA
- Inland Revenue warns against divulging personal details
- Second jail term for major tax scam
- Welcome surprise for owners of forgotten money
- End-of-year tax date fast approaching
- Time running out for student loan amnesty
Corporate Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.
P O Box 2198
Wellington 6140
New Zealand
Date published: 02 Apr 2008
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