The May 2024 Government budget included tax changes to provide tax relief for individuals and families from 31 July 2024 by:

• Increasing personal income tax brackets
• Extending the independent earner tax credit
• Increasing in-work tax credit and the minimum family tax credit

NZ Individual Tax Rates:

Because the tax cuts will take effect a third of the way into the year (31 July 2024 effective date), the following composite tax rates will apply for the year ended 31 March 2025.

• June CPI @ 3.3%

The Consumer Price Index measures the rate of price change of goods and services purchased by New Zealand households. The NZ CPI increased 6.0% in the 12 months to June 2023.
New Zealand’s consumers price index increased 3.3 percent in the 12 months to the June 2024 quarter (Stats NZ). The 3.3 percent increase follows a 4.0 percent increase in the 12 months to the March 2024 quarter.

• OCR rate drops to 5.25%

The Reserve Bank has cut the official cash rate by 25 basis points - the first reduction in more than four years. The central bank said price pressures were cooling and expected annual inflation to fall back to its 1 to 3 percent target band in the September quarter.
Updated forecasts showed the cash rate falling to 4.9 percent by the end of the year - opening up the possibility for cuts in October and November.

• 2024 Herd Values (for tax purposes)

Each year the Inland Revenue determines herd scheme values (National Average Market Values or NAMV). These are based on the livestock market and used for all livestock valued under the herd scheme.

• Beef – drought in many parts of New Zealand have put pressure on meat works to process stock and contributed to a fall in values (average 6.5%). Improved stock weights coming into calving potentially offsetting value drops.
• Sheep – drought, farm input inflation, high interest rates and poor wool returns have contributed to many sheep farmers having the worst season in years. Sheep values have fallen substantially.
• Dairy – small value fall in female classes, but small average increase in male classes

Click Here for detailed market values for specified livestock.

• Dairy – Fonterra recently announced a new forecast range of $7.25 to $8.75 per kilogram of milk solids (kgMS), with a mid-point of $8 per kgMS – up 15% on 2023.