A new resource shows New Zealanders where their income tax ends up.
Maxim Institute’s Income Tax Tracker shows people where the Government spends their tax, and how much is spent in different areas.
Tracking a median individual income earner’s tax shows they will contribute $622.07 towards New Zealand Superannuation, $177.61 toprimary schools and $86.62 to the police. Slightly more of their tax will be spent on Family Tax Credits than on the Domestic Purposes Benefit.
A minimum wage earner will contribute $32.95 of their income tax towards student loans and $33.17 towards KiwiSaver, while a highincome household we modelled would contribute $329.92 towards student loans and $332.16 towards KiwiSaver.
Maxim Institute Acting CEO Alex Penk says the Tax Tracker gives important information to New Zealanders.
“The Tax Tracker gives New Zealanders an idea of where their income taxes are going, as well as a sense of proportion. It helps them see what the Government spends a lot on, and what it spends a little on.
“This gives us some idea of the Government’s priorities—at least as measured by spending—and therefore our priorities as a country.”
Penk says although the Government already produces a lot of information about its spending it is usually in figures which many New Zealanders find hard to relate to.
“Figures in tens of millions, hundreds of millions or even billions are difficult to relate to our everyday experience. The Tax Tracker takes those figures and puts them into the sorts of numbers we’re used to seeing in our daily lives.”
Penk says the Tax Tracker will also help New Zealanders to more easily decide whether they think the Government is spending money on the right things.
“Having a better understanding of the how the Government has chosen to spend our money helps us to challenge or applaud the Government for the decisions it makes.
“This is very important in a democracy, so that we can make informed decisions about whether we like the way the Government is doing its job.”
For further information please see attachments or our website www.maxim.org.nz