The Government released its 2025 Budget, featuring a $6.6 billion tax change aimed at stimulating economic growth, alongside cuts exceeding $21 billion over four years. Approximately 180,000 families will experience a 0.5% increase in their effective marginal tax rate, although other tax credit changes will ensure they remain better off, despite concerns that the higher rate may discourage work. Additionally, while a reduction in the corporate tax rate was considered, officials opted for a 20% expensing scheme instead, citing potential risks to the growth agenda due to cuts in KiwiSaver subsidies.
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