Jmy

Hi all,

Are mortgage interest payments tax deductible in new zealand ? How
about australia ?

How much can someone who makes about $60,000 in NZ expect to pay in
terms of their income tax ? (plus the 15% GST and property taxes
....).



Thanks all, your feedback is much appreciated.

Karlie

In Australia "Mortgage Interest" payments may be tax deductible if you use
the property to gain income (NOT YOUR PRINCIPLE PLACE OF RESIDENCE) so for
instance an investment property would normally be eligible for tax
deductions of the Mortgage Interest payments. There are other deductions for
rental/investment/negatively geared properties as well, Body Corporate costs
if applicable, Council Rates, purchase costs and some maintenance costs but
not capital improvement costs. I cannot speak of the situation in New
Zealand though.



"jmy" wrote in message
news:[email protected]...
    > Hi all,
    > Are mortgage interest payments tax deductible in new zealand ? How
    > about australia ?
    > How much can someone who makes about $60,000 in NZ expect to pay in
    > terms of their income tax ? (plus the 15% GST and property taxes
    > ....).
    > Thanks all, your feedback is much appreciated.

Brenda

"jmy" wrote in message
news:[email protected]...
    > Hi all,
    > Are mortgage interest payments tax deductible in new zealand ? How
    > about australia ?
    > How much can someone who makes about $60,000 in NZ expect to pay in
    > terms of their income tax ? (plus the 15% GST and property taxes
    > ....).
    > Thanks all, your feedback is much appreciated.

Mortgage interest payments are not tax deductible. You can apply for income
rebates for childcare and/or charitable donations (up to $500) but that's
about it.

If you made $60,000/ year, here are approx calcs:

Income tax rate Income Tax
Income up to $38000 taxed at 19.5% $38000.00
$7410.00
Income over $38000 up to $60000 taxed at 33% $22000.00 $7260.00
Remaining income taxed at 39% $0.00
$0.00
Totals
$60000.00 $14670.00

There is also an ACC levy of 1.2% (for 2002 year) which would add $720 to
your tax burden, so the amount without rebates would be $15390.


If paid monthly, you would receive $3718.75 ($5000 gross with $1281.25
withheld for income tax.). If you had no other income, you would have
withheld 15375.00 withheld and would owe $15. at the end of the year.

Please keep in mind that this is just a simple calculation. You'll probably
have earned interest or dividends that may also need to be added.

So at 60,000 per year, your tax would be on average 25.65% of your income.

BTW, GST is 12.5%.

Brenda.

Robert Edwards

Brenda is speaking of NZ obviously
"Brenda" wrote in message
news:7s1%[email protected]...
    > >
    > Mortgage interest payments are not tax deductible. You can apply for
income
    > rebates for childcare and/or charitable donations (up to $500) but that's
    > about it.
    > If you made $60,000/ year, here are approx calcs:
    > Income tax rate Income Tax
    > Income up to $38000 taxed at 19.5% $38000.00
    > $7410.00
    > Income over $38000 up to $60000 taxed at 33% $22000.00 $7260.00
    > Remaining income taxed at 39% $0.00
    > $0.00
    > Totals
    > $60000.00 $14670.00
    > There is also an ACC levy of 1.2% (for 2002 year) which would add $720 to
    > your tax burden, so the amount without rebates would be $15390.
    > If paid monthly, you would receive $3718.75 ($5000 gross with $1281.25
    > withheld for income tax.). If you had no other income, you would have
    > withheld 15375.00 withheld and would owe $15. at the end of the year.
    > Please keep in mind that this is just a simple calculation. You'll
probably
    > have earned interest or dividends that may also need to be added.
    > So at 60,000 per year, your tax would be on average 25.65% of your income.
    > BTW, GST is 12.5%.
    > Brenda.

Jmy

Thanks Branda, your input is really appreciated.

Jimmy


"Brenda" wrote in message news:...
    > "jmy" wrote in message
    > news:[email protected]...
    > > Hi all,
    > >
    > > Are mortgage interest payments tax deductible in new zealand ? How
    > > about australia ?
    > >
    > > How much can someone who makes about $60,000 in NZ expect to pay in
    > > terms of their income tax ? (plus the 15% GST and property taxes
    > > ....).
    > >
    > >
    > >
    > > Thanks all, your feedback is much appreciated.
    >
    > Mortgage interest payments are not tax deductible. You can apply for income
    > rebates for childcare and/or charitable donations (up to $500) but that's
    > about it.
    >
    > If you made $60,000/ year, here are approx calcs:
    >
    > Income tax rate Income Tax
    > Income up to $38000 taxed at 19.5% $38000.00
    > $7410.00
    > Income over $38000 up to $60000 taxed at 33% $22000.00 $7260.00
    > Remaining income taxed at 39% $0.00
    > $0.00
    > Totals
    > $60000.00 $14670.00
    >
    > There is also an ACC levy of 1.2% (for 2002 year) which would add $720 to
    > your tax burden, so the amount without rebates would be $15390.
    >
    >
    > If paid monthly, you would receive $3718.75 ($5000 gross with $1281.25
    > withheld for income tax.). If you had no other income, you would have
    > withheld 15375.00 withheld and would owe $15. at the end of the year.
    >
    > Please keep in mind that this is just a simple calculation. You'll probably
    > have earned interest or dividends that may also need to be added.
    >
    > So at 60,000 per year, your tax would be on average 25.65% of your income.
    >
    > BTW, GST is 12.5%.
    >
    > Brenda.