Every country has different tax rules, so you can only trust tax advice from local experts and accountants.

Here in Aotearoa, we have a fairly simple tax system, which means it’s still complicated, but it could be worse. You pay tax on almost all sources of income (gifts and prize money are exceptions).

Tax is progressive. You pay a lower tax rate of 10.5 per cent for the first $15,600 you earn, then 17.5 per cent for the money you earn above $15,600 to $53,500. Then, above $53,500 to $78,100, you pay 30 per cent tax. It’s up to 33 per cent tax between $78,100 and $180,000. Upward of that point, it’s 39 per cent.

This means that if you earn more and get pushed into a higher tax bracket, you never end up earning less money. It’s also worth noting that you pay the same overall tax rate on all your jobs – if you have a secondary income, you might use a different tax code, but the overall rate will be the same.

There is only one situation where earning more can result in a financial loss when you earn more – it involves Working for Families tax credits for households earning less than $48,000, so if this applies to you, get advice.

The main way Kiwis reduce their tax burden is by having a business. Even a small business, with a home office, may allow you to claim business expenses on your computer, phone, car and some household expenses. Talk to an accountant to get this set up effectively.