Some Tax Stuff!!!

Working For Families: From April 1 2012 many of the small changes to Working For Families signalled last year come into effect:

§ The family tax credit amount for children under 16 will rise for inflation:

Qualifying Child	Current amount	New amount
First child if under 16	$4,578	$4,822
Second child if under 13	$3,182	$3,351
Second child if 13 - 15	$3,629	$3,822

§ The net income level guaranteed by the minimum family tax credit will rise from $22,204 to $22,568

§ The abatement rate will increase from 20 cents to 21.25 cents in the dollar

§ The abatement threshold will decrease from $36,827 to $36,350

KiwiSaver: As of 1 April 2012 employer contributions will no longer be tax free. Employer Superannuation Contribution Tax will apply at the employee’s marginal tax rate.

Minimum wage: As of 1 April 2012 the minimum wage will increase from $13.00 per hour to $13.50 per hour.

Training and new entrants’ minimum wages will increase from $10.40 to $10.80 - 80% of the adult minimum wage.