From the 1 April 2009 the independent earner tax credit (IETC) will provide tax relief to middle-income New Zealanders who don’t receive core assistance from the government.
IETC is a tax credit for individuals who earn between $24,000 and $48,000 and don’t receive: working for families tax credits, an income-tested benefit, NZ super or a veteran’s pension.
The new tax codes are:
- ME for non-student loan borrowers who qualify, and
- ME SL for student loan borrowers who qualify.
To receive the IETC weekly as part of their pay, employees will need to fill out a new IR330 form selecting one of the two tax codes from above and forward to payroll.