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2008 media releases

Employers reminded about new tax rates
22 September 2008

Inland Revenue is advising employers that they need to be ready to start using the new tax rates from 1 October.

Changes to PAYE rates take effect from that date, meaning employers will need to use the new rates for pay periods that end on, or after, 1 October.

Group Manager Assistance, David Udy, said Inland Revenue had already issued updated PAYE deduction tables to all employers.

"We have worked with payroll providers and companies to ensure their software takes account of the new rates."

If people are self-employed and pay provisional tax the changes to personal income tax rates will affect them too, he said.

The current and new tax rates for PAYE are:

Tax rates until 30 September 2008+ Tax rates from 1 October 2008 to 31 March 2010*
15% on income to $9,500 12.5% on income to $14,000
21% on income between $9,501 and $38,000 21% on income between $14,001 and $40,000
33% on income between $38,001 and $60,000 33% on income between $40,001 and $70,000
39% on income over $60,000 39% on income over $70,000
+ takes into account the effects of the low income rebate
* not including ACC earners levy.

The tax code declaration (IR330) form has also been updated and employers need to have the new form available for employees from 1 October.

More information can be found about all these changes, their implications, and the updated PAYE calculators on the Inland Revenue website.

For further information contact Catherine Delore:

(04) 890 1743
(029) 890 1743
catherine.delore@ird.govt.nz

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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: 29 Sep 2008

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