Great, you’ve paid your dues

From today, New Zealanders will have paid their tax bills for the year, and can start earning for themselves.

Accounting and business advisory firm Staples Rodway calculates New Zealand’s ‘‘Tax Freedom Day’’ each year by taking GDP and working out all the direct and indirect taxes Kiwis pay.

This year, the first 113 days of the year were spent earning money that goes to central government. The next 13 then covered the taxes we pay to local authorities.

But from today, our 239 days working for ourselves have begun.

Today’s Tax Freedom Day is a couple of days later than last year’s.

‘‘The difference compared with last year is down to the Government’s increased take from individual taxes and GST,’’ said Staples Rodway tax director Mike Rudd.

Tax ‘‘bracket creep’’ and an increase in spending were the main reasons this year’s day was later, he said.

An increase in the cost of living was also a factor because higher prices meant more GST was paid.

‘‘The expectation was that the [Tax Freedom Day] could go later when the Labour Government got in but at this stage there’s no indication of that,’’ Rudd said.

‘‘What’s encouraging is that the Government has indicated it intends to take a sensible approach to spending and avoid incurring significant debt, as well as making no changes to company or individual tax rates.’’

Tax freedom comes later in New Zealand than in Australia (April 16), and the US (April 19), but is before the equivalent date in Britain, France and Germany. France’s freedom day does not come until the end of July.