rates were lowered in the 1920s and in 1930 the top income tax rate was set to 29.25%, and the threshold lowered to £260 of annual income. By 1939, and before World War II, the top rate was 42.9%. During the war, there were huge rises in the top rate, taking it to 90%. It dropped to 76.5 percent by the end of the 1940s. The working class still paid little or no income tax. The top rate was 60% in 1982, until Robert Muldoon's National Government raised it to 66% that year. The Fourth Labour Government, with David Lange as prime minister and Roger Douglas as finance minister, introduced a goods and services tax in 1986 and then reduced the top income tax rate from 66% to 48% in 1988 and then 33% in 1989. The Fifth Labour Government raised it to 39% in 2000. It was cut again by John Key's National government, and again a 39% rate was reintroduced by the Labour government in 2022. As of 2014, $29.8 billion (41%) of the New Zealand Government's core revenue of $72.5 billion was coming from individuals' income taxes. Types of taxable income salary and wages business and self-employed income income from investments (interest, dividends, certain property transactions, etc.) rental income overseas income (including income from an overseas pension) A bright-line test on property speculation was introduced on 1 October 2015, specifying profit from certain purchases and sales of property as income. The test does not apply to profit from the family home, death estate, or property sold as part of a relationship settlement. The main aim of the test is to tax profits from property speculation. At the initial implementation in 2015, profit on houses bought and sold within two years were subject to income tax. The two-year threshold was extended to five years in 2018, and ten years in 2021. Generally profits made from frequent stock trading will be deemed taxable income. Tax rates Income tax varies dependent on income levels in any specific tax year (personal tax years run from 1 April to 31 March). 2021– Income is taxed by the amount that falls within each tax bracket. For example, persons who earn $70,000 will pay only 30% on the amount that falls between $48,001 and $70,000 rather than paying on the full $70,000. Consequently, the corresponding income tax for that specific income will accumulate to