Kiwi families will have a collective $10 billion more in their back pockets over the next three years as a result of plummeting mortgage costs, injecting even more spare cash into the economy than next month’s tax cuts.
This great news comes in an article by Rob Stock at the Sunday Star times.
Add to that the $9billion estimated to be returned to tax taxpayers through last years tax cuts and NZ’s economy looks to have plenty of stimulus it needs to get our economy running smoothly again.
A lot of the mortgage cuts will probably go straight into the economy according to some experts as people have been holding off spending over the last 6 months due to concerns about jobs and making ends meet.
ON APRIL 1
The tax cuts will give a worker on the average wage $18 extra a week
Earning under $40,000 = $0 a week
On $42,000 = $4.62
On $44,000 = $9.23
On $46,000 = $13.85
Between $48,000-$70,000 = $18.46
On $80,000 = $20.38
On $100,000 = $24.23
Independent earners rebate: all workers who earn $24,000 a year or more who are not receiving a benefit, Working for Families payments or New Zealand Superannuation qualify for a tax rebate. From April 1 the rebate will be $10 a week. It reduces as income increases above $44,000, meaning a person earning $48,000 a year would no longer be eligible for the rebate.
