Tax Cuts Will Increase Superannuation Payments

( The introduction of the National-led Government’s tax reform package will see New Zealand Superannuation payments increase on 1 October 2010 and leave superannuitants better off even after the GST increase.

“Tax reform is an important part of this Government’s drive to boost economic growth, create jobs, and raise incomes,” says Social Development Minister Paula Bennett.

“As result of these reforms the vast majority of New Zealanders will be better off, including Superannuitants,” says Ms Bennett.

“A combination of tax cuts and compensaton for the rise in GST, means Superannuitants will have more disposable income,” says Ms Bennett.

A typical single Superannuitant, living alone will receive an extra $31.26 in their fortnightly payment, including the GST compensation and the effect of tax cuts.

Once the increase in prices due to the rise in GST is taken into account, a single Superannuitant, living alone will be better off by about $8.50 a week or about $445 a year.

Married couples receiving superannuation will get around an extra $42 between them in their fortnightly payments.

After the GST increase they will be better off by about $11 a week, or about $560 a year.

Find out how the tax changes will benefit you. Visit the tax calculator at:

Media Release 21 September 2010 from Paula Bennet, Minister of Social Development and Deployment.