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Confirmation of annual income tax rates for 2004-05

The income tax rates for the 2004-05 income year.

Schedule 1, Income Tax Act 1994

The income tax rates for the 2004-05 income year have been confirmed as follows:

Policyholder income 33 cents for every $1 of schedular taxable income
Maori authorities 19.5 cents for every $1 of taxable income
Companies, public authorities and local authorities 33 cents for every $1 of taxable income
Trustee income (including that of trustees of superannuation funds) 33 cents for every $1 of taxable income
Trustees of group investment funds in respect of category A 33 cents for every $1 of schedular taxable income
Taxable distributions from non-qualifying trusts 45 cents for every $1 of taxable income

Other taxpayers (including individuals)

-  Income not exceeding $38,000 19.5 cents for every $1 of taxable income
-  Income exceeding $38,000 but not    exceeding $60,000 33 cents for every $1 of taxable income
-  Income exceeding $60,000

39 cents for every $1 of taxable income

Specified superannuation contribution

Where the employee has made an election under section NE 2AA contribution 39 cents for every $1 of the withholding tax
Where the employer has made an election under section NE 2AB and the amount of salary or wages given by section NE 2AB is:
-  not more than $9,500 15 cents for every dollar of contribution
-  more than $9,500 and not more
   than $38,000
21 cents for every dollar of contribution
-  more than $38,000 33 cents for every dollar of contribution
Where no such election is made 33 cents for every dollar of contribution

The income tax rates confirmed are those that applied for 2003-04, with the following exceptions:

  • a new rate for the income of Maori authorities;
  • there is no longer a rate for undistributed rents, royalties and interest of the Maori Trustee; and
  • new rates for specified superannuation contributions where the employer has made an election under section NE 2AB of the Income Tax Act 1994.

The rates apply for the 2004-05 income year.