NZ Taxes: Where Your Money Goes

Understanding PAYE and tax deductions Year 10 Social Studies/Economics How your future income supports New Zealand

What is PAYE Tax?

Pay As You Earn - tax deducted from your wages Automatically taken from your paycheck Based on your income level Collected by your employer and sent to IRD

Think About It

If you earned $200 per week from a part-time job, how much tax might you pay? What services do you think your tax money funds?

How Much Tax Do You Pay?

Tax rates increase with higher income First $14,000: 10.5% tax rate $14,001-$48,000: 17.5% tax rate $48,001-$70,000: 30% tax rate Over $180,000: 39% tax rate

Tax Calculator Challenge

Work in pairs to calculate tax on different salaries: Scenario 1: $25,000 annual salary Scenario 2: $45,000 annual salary Scenario 3: $65,000 annual salary Use the tax brackets to find the total tax owed

Other Deductions from Your Pay

ACC Levy: 1.39% (accident compensation) KiwiSaver: 3% minimum (retirement savings) Student Loan repayments: 12% over $24,128 Some deductions are mandatory, others optional

Where Does Your Tax Money Go?

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Government Spending Breakdown

Understanding Tax Responsibility

'Taxes are the price we pay for a civilized society' - Justice Oliver Wendell Holmes Your tax contribution helps build the New Zealand we all share

Plan Your Future Budget

Choose a career you're interested in Research the typical salary Calculate your take-home pay after tax and deductions Plan a monthly budget including: - Rent/housing costs - Food and groceries - Transport - Entertainment - Savings goals