Recent changes to KiwiSaver.
|Article Type:||Brief article|
|Subject:||Tax rates (Laws, regulations and rules)|
|Publication:||Name: Kai Tiaki: Nursing New Zealand Publisher: New Zealand Nurses' Organisation Audience: Trade Format: Magazine/Journal Subject: Health; Health care industry Copyright: COPYRIGHT 2010 New Zealand Nurses' Organisation ISSN: 1173-2032|
|Issue:||Date: Nov, 2010 Source Volume: 16 Source Issue: 10|
|Topic:||Event Code: 930 Government regulation; 940 Government regulation (cont); 980 Legal issues & crime; 920 Taxes Advertising Code: 94 Legal/Government Regulation Computer Subject: Government regulation|
|Product:||Product Code: 9101101 Tax Rates NAICS Code: 92113 Public Finance Activities|
|Geographic:||Geographic Scope: New Zealand Geographic Name: New Zealand Geographic Code: 8NEWZ New Zealand|
KiwiSaver changes announced for October 2010 include Lower tax
rates and new rules around minors signing up for KiwiSaver. Aussie Super
transfers to KiwiSaver are also one step closer for New Zealanders.
Contribution rates for employees will not be changing.
Core KiwiSaver member benefits remain in place. These include:
* $1000 kickstart still paid when you first join.
* $1042 member tax credit matching contributions still paid every year (sorry, only for over 18s).
* Two percent employer payment still paid to employees' accounts.
Lower tax rates: New Lower tax rates applied to investment income portfolio investment entities (PIEs)--many KiwiSaver schemes are PIEs--came into effect on October 1, 2010. The three rates will be:
* 30 percent rate dropped to 28 percent
* 21 percent rate dropped to 17.5 percent
* 12.5 percent rate dropped to 10.5 percent
New rules for under 18s joining KiwiSaver: Those aged between 16 and 18 will need to sign the application form along with one parent or Legal guardian to join KiwiSaver. For those aged under 16, all parents or legal guardians need to sign on behalf of the applicant.
Aussie Super transfers one step closer: Work is under way on both sides of the Tasman to enable the transfer of retirement savings between NZ KiwiSaver Schemes and qualifying Australian Superannuation Schemes. Legislation has been passed in New Zealand, but we are still waiting on Australia to do the same, so transfers can't happen yet. We'll keep you posted with updates.
Employee contribution rates: Current employee contribution rates of two percent, four percent and eight percent remain, but the proposal to introduce six percent and 10 percent rates was scrapped.
Adviser disclosure statements and an Investment Statement for the Gareth Morgan KiwiSaver Scheme are available at gmk.co.nz or phone 0800 427384.
Column by Andrew Gawith, director, Gareth Morgan KiwiSaver Scheme and Gareth Morgan Investments
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