Legislative Update for PeopleSoft HCM Global Payroll New Zealand – Effective July 31, 2024

Inland Revenue Department (IRD) has published the new threshold changes for Personal Income tax and Independent earner tax credit (IETC) which is effective from 31 July 2024

Personal Income Tax thresholds 

The bill comprises of changes to the personal income tax thresholds with effect from 31 July 2024

Independent earner tax credit 

The Bill proposes changes to the IETC thresholds. Currently, a taxpayer is entitled to the IETC, if they earn from $24,000 to $48,000 per year. 

▪ The personal income threshold at which the abatement begins changes from $44,000 to $66,000.

▪ The personal income threshold at which taxpayers will no longer be eligible to receive any amount of IETC changes from $48,000 to $70,000. 

Note: Some consequential changes to other tax types that are based on personal tax rates and thresholds will not take effect until 1 April 2025.

The changes will be delivered for Release 9.2 and the solution will be posted by 2^nd July 2024 as a PRP. For more information on solution posting details, please keep watching My Oracle Support, Document ID 2973834.1