[Media Release] Get your clients finances in shape for the New Year

As the holiday season draws to a close and the new year begins, many Kiwis will be entering the New Year with unmanageable levels of debt.

New Zealand's total household debt last year was approximately $393.8 billion NZD. This translates to an average household debt of about $218,770 NZD per household. Additionally, household debt was 167% of disposable income, meaning that, on average, households owe 1.67 times their annual disposable income. As of November 2024, the average credit card debt per person in New Zealand was approximately $1,250 NZD (including both interest-bearing and non-interest-bearing amounts).

These staggering figures aren’t just numbers — they represent countless families struggling under the weight of debt. Small businesses are also feeling the strain as well.

As of March 2024, New Zealand businesses owed approximately $6.7 billion NZD in unpaid taxes. This includes various types of tax debt, such as GST, employer activities (like PAYE), and income tax for both individuals and non-individuals. The increase in tax debt reflects the economic pressures businesses are facing, with significant rises in GST and employer-related tax debts.