22/05/2025
Budget 2025
Here's a summary of the budget changes that might affect your income in the next year:
Investment Boost
If you purchase an asset, you will now be able to claim 20% of the cost in the year of purchase, and depreciate the remainder over the life of the asset
Kiwisaver changes
Government contributions will be halved, so instead of getting $521/year, you will get $260.72 - but only if you are earning less than $180,000
The default contribution rate will increase to 4% (for employees and employers), but employees can opt to stay at 3%. This will be phased in, so 3.5% next year, then 4% from April 2028
16 and 17 year olds will also be eligible for employer and government contributions
Working for Families
The abatement threshold is moving from $42,700 to $44,900
Best Start tax credits will now be income tested, with payments reducing for families with income over $79,000, and stopping for families with income over $97,000
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