Tax threshold up tomorrow

The tax administration department is urging employers to put the necessary arrangements in place to facilitate the increase in the income tax threshold.



The increase takes effect tomorrow.



The threshold will be increased to $220,272 per year.



This means that people who earn less than $18,356 a month, or less than $8,472 every two weeks will not have to pay income tax.



The tax department says employers should make adjustments to their payroll systems so that employees can benefit.



Self-employed persons and pensioners will also benefit from new threshold.



The income tax threshold was last increased in July from $193,440 to $196,872.