Budget Summary

Here is a run down of the 2010 Budget Announcement.

Personal Income Tax
Personal Income tax rates were reduced and will begin October 1st of this year. The cuts are as follows:

• Income $0-$14,000 dropped from 12.5% to 10.5%
• Income $14,001-$48,000 dropped from 21% to 17.5%
• Income $48,001 -$70,000.00 dropped from 33% to 30%
• Income $70,000 and higher dropped from 38% to 33%

Company Tax Rate
The rate of company tax will decrease from 30% to 28% from 20011/12 income year

GST Rate
The rate of the goods and services tax (GST) will be increased from 12.5% to 15% beginning on October 1st 2010.

Trustee Tax Rate
This rate currently 33% is unchanged for Trustees.

Depreciation
Owners of both commercial buildings and rental houses will no longer be able to claim depreciation on investments.

Repairs and maintenance expenditure by building owners will remain deductible for income tax purposes, while depreciation deductions will remain for "fit out" items not considered to be part of the building, a review of commercial fit outs is to come.

The Budget also removes 20 per cent depreciation loading on new plant and equipment purchased after Budget day.

Working for Families
From April 1st 2011 investment losses will need to be added back to a persons taxable income for the purpose of determining eligibilty for Working for Families