Income Splitting Policy
Income splitting is a tax policy of attributing the earned income of one spouse to the other spouse when assessing personal income tax. This means “splitting” away the income of the higher earner to reduce their income for tax measurement, thus reducing tax rates paid by the whole family. Current New Zealand tax laws do not support or facilitate income splitting.
Tax relief: New Conservative would introduce income splitting for couples in a legally recognised relationship such as marriage. We recognise the economic hardships of many families who try to do best by their children. We propose that families who meet this criteria be eligible to split their income in order to take advantage of lower tax brackets. This will result in a better financial position for many families who have chosen to limit the working hours of one parent for the wellbeing of their children.
Lower Tax Calculator
How much will you save with our income splitting and tax policies? Enter your household’s income in our calculator below to see how much you’d save on your tax bill every week if you filed taxes jointly and each got your first $20,000 tax free. Other bracket changes from our tax policy are also factored in, see our Lower Taxes policy for more details. No data entered is sent or stored and the calculation is processed in your browser. The calculator is provided for demonstration purposes only.