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Kiwis hit by surprise tax bills, parental leave recipients among hardest hit

Many New Zealanders, especially those on parental leave, are facing unexpected tax bills amounting to thousands of dollars due to automated income tax assessments by Inland Revenue since 2019.

Natasha, a primary teacher on maternity leave, told state media she was surprised by a $2300 tax bill, disrupting her plans for a Christmas holiday. She is not alone, with many others in similar situations, often due to being on the wrong tax code or receiving holiday pay and maternity grants simultaneously. This has led to significant financial strain, particularly for families already struggling with the rising cost of living.

Financial advisor Nadine Higgins, also on maternity leave, highlights that dual income streams during paid parental leave are a common issue, causing many to be taxed at a secondary rate. Additionally, an extra payday within a financial year can increase tax liabilities unexpectedly. Deloitte tax expert Robyn Walker explained that Inland Revenue can write off tax caused solely by the extra pay issue, but this is limited. Affected individuals are advised to contact Inland Revenue for installment payment options and ensure correct tax codes for future income to avoid similar surprises.

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9 COMMENTS

  1. The job of the government is not to wreck people’s lives.

    I agree with taxes to fund infrastructure and the running of government. Health, education, courts, police, military, old people, helping people when they are down, running of banks and other essential services. The administration of work and income, our precious resources, prisons. Anything that helps the country get ahead.

    Ones I do not support is any gender, race based and unnecessary regulation that ends up creating excessive overheads that is passed on to consumers.

    The full list is here.
    https://www.govt.nz/organisations/

    Sending out surprise invoices to the public to try and pay for your overdraft is not on. Particularly in this market where people are living on a knife edge. Cut your spending on all useless and unwanted idealogical bullshit. Authorities who prosecute normal working class people must all be returned to self-regulation with laws to follow. The cost of wasteful lunatic policies is passed on to consumers.

  2. Another problem with AI….the randomness of the algorithm.
    Al-Jazeera did a 3-part documentary titled ‘All Hail the Algorithm’ outlining the dangers of such programming.
    We may find ourselves victimised by the government due to algorithmic ‘Pre-Crime’, unwarranted surveillance due to religious and political beliefs, and targeted taxation.
    This will also include the implementation of virtual currencies, Social Credit Scores, and the falsely-based ‘Carbon Footprint’ tracking where you may go inside of the already planned and enacted implementation ‘:15 Minute Cities’, as evidenced by the attached human dog kennels we are seeing being built.

    • Because private planes and houses overlooking Herne Bay don’t come cheap. Don’t you know our politicians are accustomed to a certain standard?

  3. Surely, if it’s an automation problem within IRDs system, then the buck should stop with IRD, not the unsuspecting punter.

    IRD should do the right thing, either pay up themselves or write off the whole amount.

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