[Trigirl]

Money concerns are huge for most people moving over here. So after a discussion on a previous thread I thought I'd put together a few figures to help you do those calculations.

This bit tells you how much you will take home after tax each week

earn $40k per year = take home $604 per week
$50k = $730
$60k = $857
$70k = $972
$80k = $1086
$90k = $1201
$100k = $1316


Then how much your mortgage will cost (using Westpac’s current variable rate of 9.7% over 25 years - obviously you can get it cheaper if you go for a fixed rate)

$100k of mortgage will cost you $204 a week

You can multiply this to get however much mortgage you need. So if for example you wanted to borrow $250k then it will cost you 2.5 x $204 = $510 a week.

[wiki]

I really wish it would let me re-reputate you Mandy!

A very handy table

(although, remember that if your 80k income is made up of 40k each, you'll have more take-home pay because the tax will be less) :D

[zardell]

Excellent post....:clap

It will help a lot of people evaluate their finances.

:nice1

Julie

xx

[pinkpiggy]

Great post Mandy. I have done some of these workings out myself but it's nice to see them written down, in black and white, from someone already in NZ.

Cheers :nice1

[holland]

Great Post

Thanks

J and G x

[Jo Jo]

Fantastically helpful - thank you. (Obviously you are far too helpful - can't give you any more reputation!)

[constablechuck]

In the beginning your take home pay may be higher because of the way the under $38000 rebate is calculated for Salary & Wage earners.

First $9500 is taxed @ 15% + 1.3% ACC

$9501 - $38,000 is taxed @ 21% + 1.3% ACC

$38001 - $60,000 is taxed @ 33% + 1.3% ACC

$60,001 + is taxed @ 39% + 1.3% ACC

Business income is taxed @ 33% + ACC

The IRD website www.ird.govt.nz is a good source of information.

[Tia Maria]

Thought I'd just give this a quick bump!

Cheers

Tia

[wiki]

Thought I'd just give this a quick bump!

Cheers

Tia

Thanks for that - it gave me the chance to see if I was able to give Mandy some more reputation and FINALLY it did :)

[osmyth]

In the UK there is a general saying that you should try to keep your mortgage/rent payment about 33% of your take home pay. I think with the high house prices at the moment this may be around 50%+ for some!
What do people think is a realistic figure for NZ.
cheers, Owen.

[The Hodges]

Great post. Really helpful!

[osmyth]

The Hodges, if your post was directed at me please could you tell me why?
Thanks.

[CityBlue]

The Hodges, if your post was directed at me please could you tell me why?
Thanks.

I think if the Hodges post was aimed at you they would have quoted you like I have.
:nice1

[b&k]

Due to the simplicity of the NZ tax system, it is possible to work back from after tax pay to gross salary.

If you add up all your outgoings (don't forget to include spending money, savings, pensions etc), you will get a monthly figure. Mulitply this by 12 to annualise it. To get the pre-tax salary use the following formulae - this is where you should have paid attention at school :roll

If you outgoings are between $0 and $7,951 a year:
x = y/0.837

If you outgoings are between $7,952 and $30,096 a year:
x = (y-570)/0.777

If your outgoings are between $30,097 and $44,550 a year:
x = (y-5130)/0.657

If you outgoings are more than $44,551 per year:
x = (y-8730)/0.597

where x is your gross salary and y is your outgoings.

For example, if your monthly outgoings are $5,000 per month, multiply this by 12 to get $60,000 a year, then to cover these you would require a gross salary of:

(60000-8730)/0.597 = $85,879

It gets more complex with 2 salaries but it can be done. If anyone wants the formulae, I will post them :nice1

[osmyth]

Due to the simplicity of the NZ tax system, it is possible to work back from after tax pay to gross salary.

If you add up all your outgoings (don't forget to include spending money, savings, pensions etc), you will get a monthly figure. Mulitply this by 12 to annualise it. To get the pre-tax salary use the following formulae - this is where you should have paid attention at school :roll

If you outgoings are between $0 and $7,951 a year:
x = y/0.837

If you outgoings are between $7,952 and $30,096 a year:
x = (y-570)/0.777

If your outgoings are between $30,097 and $44,550 a year:
x = (y-5130)/0.657

If you outgoings are more than $44,551 per year:
x = (y-8730)/0.597

where x is your gross salary and y is your outgoings.

For example, if your monthly outgoings are $5,000 per month, multiply this by 12 to get $60,000 a year, then to cover these you would require a gross salary of:

(60000-8730)/0.597 = $85,879

It gets more complex with 2 salaries but it can be done. If anyone wants the formulae, I will post them :nice1

b&k, you have used the 9500 lower tax band (as mentioned previously in the thread) but the ird website doesn't seem to mention it, starting at 19.5% upto $38,000 ?

[b&k]

sorry osmyth, I was indeed using the old numbers. I have updated the formulae below with the latest rates from the IRD website. I have also, for all the better paid people out there, added the upper limit for ACC which kicks in at $99817.

The new formulae are:

If you outgoings are between $0.00 and $30,096.00 a year:
x = y/0.792

If your outgoings are between $30,096.01 and $44,550.00 a year:
x = (y-5130)/0.657

If you outgoings are between $44,550.01 and $68,320.75 per year:
x = (y-8730)/0.597

If you outgoings are $68,320.76 or higher per year:
x = (y-7432.38)/0.61

where x is your gross salary and y is your outgoings.

For example, if your monthly outgoings are $5,000 per month, multiply this by 12 to get $60,000 a year, then to cover these you would require a gross salary of:

(60000-8730)/0.597 = $85,879.40

[tea drinker]

Thanks for the useful info.
Added it to the increasing pile of research!