Nats silent on KiwiSaver tax
MARTIN KAY - The Dominion Post | Wednesday, 19 March 2008
Kiwisaver members will still get a government subsidy under National, but finance spokesman Bill English is refusing to say whether that means keeping up to $20 a week in tax breaks.
National was also still deciding whether to keep compulsory employer contributions, which begin with a minimum of 1 per cent of salary from April 1 and rise to 4 per cent by 2011.
With the number of people in the scheme fast approaching 500,000, National is under pressure to say whether it will keep it in its present form. Mr English told fund managers and others at a summit on superannuation funds yesterday that National was still finalising its policy, but confirmed to reporters that some features would remain.
"There's no doubt there'll be KiwiSaver with a government subsidy under National."
He refused to say if that meant retention of the $1000 one-off payment to kick-start accounts or the dollar-for-dollar contribution tax refunds up to $20 a week.
National has previously said it supports the KiwiSaver "Mark I" scheme, which had just the $1000 kick-start, though it voted against it. Mr English said National was still deciding on employer contributions, and the final shape of its KiwiSaver plans would depend on factors including tax and investment policies.
He also took a swipe at Government plans to block the sale of 40 per cent of Auckland airport to a Canadian pension fund, saying it sent the wrong message at a time when there were moves to encourage people to join KiwiSaver and invest in shares for the first time.
Finance Minister Michael Cullen said National was "all flop, no flip" on KiwiSaver and should come clean on its intentions.
The claim that signalled intervention in the airport sale would deter people from joining KiwiSaver was "bizarre" as there had been no sign of membership numbers slowing since it was announced.
He told Parliament there were 495,000 people in KiwiSaver - 26,000 more than at the end of February - and it would pass 500,000 before or just after Easter.
Leave a comment
Email alerts
Text alerts
RSS Feeds
Make this my homepage• Get smart not tough, says crime specialist
• Apology over Gaza protest
• Ferrying prisoners costs $1m
• Kiwis stay optimistic about their bank balances
• Attacks 'have to cease'
• Opposing sides protest over Gaza invasion
• Sculptor turns to PM for help
• Protestors take to streets
• Labours of love
• Year of new faces and familiar fights
• Looking back at looking forward
• Whenuapai needs 'substantial' fund
• Key to focus 'armoury of government' on employment
• Call to test pay rules for MPs, judges
Typical National
Of course they love the Kiwisaver scheme. A boon to the IRD and private financiers!! Because most don't realise they are paying a capital gains tax on "unrealised income" on their investment.
Of course they wanted to scrape the employers contribution.
Of course they say now that there will be a continued so-called tax rebate but won't say how much.
Of course they will reduce it drastically or eliminate it soon as they can if they get the landslide they are hoping for in the elections
That way they can remain true to form and keep transferring the majority's assets and income to the top 1%.
Reply to this post
#1 Posted by P W — 14:54 PM | Tuesday , 08 July 2008