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Coalition government announces Tax and Income Relief

The coalition government has announced their tax changes to deliver tax relief in their 2024 budget through a statement by Nicola Willis. They are committing to addressing the cost-of-living crisis and are determined to bring down inflation and reduce their tax burden.

They have announced their decision to bring the brightline test for residential property back to two years, effective from 1 July 2024. This means that properties sold after 1 July 2024 will only be subject to the rule if they have been owned for less than 2 years. Additionally, the government is committing to fully restoring interest deductibility for rental properties which will be announced sometime in 2024.

The government is also progressing to deliver income tax deductions in next year’s budget and are confident they will be able to deliver this. One of the ways this will be done is through adjustment of the income tax thresholds. The existing threshold of $14,000 will be updated to $15,600, the $48,000 threshold will be updated to $53,500 and the $70,000 threshold will be updated to $78,100.

Willis ends her statement by assuring New Zealanders that relief is on its way.

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New Zealand Tax Accountant.