Published on 20 September 2018 the Tax Working Group’s interim report has touched on improvements they want to make to KiwiSaver to encourage retirement saving among the low-middle income earners.

For KiwiSaver, the Group recommends that the Government:

  • Remove Employee Superannuation Contribution Tax (ESCT) on the employer’s matching contribution of 3% of salary to KiwiSaver for members earning up to $48,000 per year.
  • Reduce the lower PIE rates for KiwiSaver funds by five percentage points each.
  • Consider ways to simplify the determination of the PIE rates (which would apply to KiwiSaver).

The Group will give further consideration to the taxation of savings in the final report, in light of its broader conclusions on the tax system. The report also touches on a few other key areas including the taxation of business.

You can read the full report here. The final report is due February 2019.

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