The key thing to look at is the taxable income you earned in each of the previous two years. This includes your wages, bonuses and other payments from employment, plus Government benefits, rental income, allowances, and any other sources of income that would be included in an income tax return.
Once you have your total taxable income, you will then need to add to this your PIE income, which is the value of the taxable income from all of your PIE investments from each of the last two years. If you are a Kiwi Wealth KiwiSaver Scheme member you can find this information on your annual member statement. The total of these is your combined income for the purposes of working out your PIR.
It is important to note that, if each of your last two income years gives you a different PIR, then the lower PIR will apply.
Inland Revenue’s website has a really useful page to help you make sure you’re using the correct PIR. For anyone working out their PIR for the first time, or confused about the process, it’s well worth checking out.
We are not permitted to give you tax advice, including advising you on which PIR you should select.