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Media Release - KiwiSaver regulatory review “timely”

Wed, 10 Mar 2010 00:00:00 +1300

Workplace Savings NZ says it is concerned about the risk of overburdening KiwiSaver providers with regulatory red tape, but otherwise is entirely supportive of any changes to the rules for regulating KiwiSaver that will benefit KiwiSavers over the long term.

KiwiSaver move 'knee-jerk reaction'

Wed, 10 Mar 2010 00:00:00 +1300

The Minister of Commerce's decision to fast track KiwiSaver regulation is a "knee-jerk reaction", says the chairman of Workplace Savings NZ.

Ireland unveils pensions overhaul

Thu, 04 Mar 2010 00:00:00 +1300

The Irish government unveiled a set of sweeping reforms to the country's pension system which include raising the state retirement age to 68 and the introduction of a mandatory scheme for all workers in the coming years. The new National Pensions Framework foresees state pension age will increase from 65 to 66 in 2014, then to 67 in 2021 and 68 in 2028. The government also committed to retain the level of state pension at 35% of average weekly earnings.

Govt plan 'step in right direction'

Fri, 19 Feb 2010 00:00:00 +1300

Commerce Minister Simon Power yesterday responded to all 60 of the recommendations made by the taskforce in December - 18 months after it was set up to try to breath new life into the market by making it more attractive to investment from individuals and companies.

KiwiSaver transfer process needs streamlining

Fri, 19 Feb 2010 00:00:00 +1300

Workplace Savings NZ - the voice of workplace savings - says streamlining the transfer process between different providers is necessary to improve the KiwiSaver experience. The comments follow a meeting of KiwiSaver providers in Auckland this week.

Changes to financial adviser law pass first reading

Wed, 17 Feb 2010 00:00:00 +1300

A bill that makes some small but important tweaks to new financial regulations passed its first reading in Parliament last night. The Financial Services Providers (Pre-Implementation Adjustments) Bill makes technical amendments to the Financial Service Providers (Registration and Dispute Resolution) Act and the Financial Advisers Act.

PM wants NZ to be super-fund 'hub'

Mon, 15 Feb 2010 00:00:00 +1300

Prime Minister John Key wants New Zealand to become an international financial hub specialising in the administration of overseas pension funds.

Workplace Savings NZ Submission on the Taxation (Annual Rates, TransTasman Savings Portability, KiwiSaver, and Remedial Matters) Bill

Wed, 10 Feb 2010 00:00:00 +1300

Workplace Savings NZ has today submitted the following response to the Finance & Expenditure Select Committee on the Taxation (Annual Rates, TransTasman Savings Portability, KiwiSaver, and Remedial Matters) Bill. Click to read more.

PM signals tax reform changes

Tue, 09 Feb 2010 00:00:00 +1300

In his Statement at the opening of Parliament today, Prime Minister John Key said measures to reform the tax system would be introduced as part of the Budget in May. Any changes would be based on "equity and fairness". Mr Key has signalled changes to the way property is taxed, changes to personal income tax rates and says further work will be done on whether the rate of GST should be increased. He also said the Government had ruled out developing any proposals for a land tax, a general capital gains tax or a risk-free return method for taxing residential investment properties.

Debt projections demand Super rethink

Thu, 04 Feb 2010 00:00:00 +1300

Winston Churchill said that he had sometimes had to eat his words and found it a wholesome diet. Prime Minister John Key needs to follow the great man's example with respect to his pledge to resign rather than tamper with the entitlement parameters of New Zealand Superannuation.

Overhaul of tax system possible - English

Wed, 03 Feb 2010 00:00:00 +1300

The budget will be delivered on May 20 but New Zealanders may get a better idea about the Government's plans for the tax system next week, Finance Minister Bill English said yesterday.

New Tyndall boss knows his numbers

Tue, 02 Feb 2010 00:00:00 +1300

It's not often the numbers man gets the top job where managing people is just as important as making money. But after 10 years at Tyndall Investment Management, Peter Lynn, a self-confessed maths-lover and actuary, says he is ready to take up the managing director's mantle.

The Pension Communications Poject 2010

Mon, 01 Feb 2010 00:00:00 +1300

Defined Contribution (DC) pension plan members in the UK have low engagement with their retirement benefits. To help address this important issue, a syndicate of leading UK pensions industry firms have sponsored a project to learn from examples of pensions workplace communications excellence around the world.

Commission to clarify definition of financial planning service

Fri, 29 Jan 2010 00:00:00 +1300

The Securities Commission says it recognises that financial advisers are confused about the Financial Advisers Act definition of a "financial planning service" and it is working on giving the definition more clarity.

OCR unchanged at 2.5pc

Thu, 28 Jan 2010 00:00:00 +1300

The Reserve Bank has left the official cash rate unchanged at 2.5 per cent, in line with economists' expectations. Reserve Bank governor Alan Bollard reiterated earlier statements that he would not increase interest rates until the middle of the year.

Super Fund outsources to Milford

Wed, 27 Jan 2010 00:00:00 +1300

The New Zealand Super Fund has outsourced the management of part of its New Zealand share investment a year after bringing some of its managed funds in house.

Inflation fall gives Reserve Bank breathing space

Thu, 21 Jan 2010 00:00:00 +1300

A 0.2 per cent fall in the December quarter Consumers Price Index (CPI) is seen giving the Reserve Bank breathing space as it decides when to start raising interest rates.

Tax reform set to be radical but 'fairer'

Wed, 20 Jan 2010 00:00:00 +1300

Property investors face higher taxes and company taxes could fall as the Government considers radical options for reform. A tax working group, led by Victoria University professor Bob Buckle, will today issue its 70-page report outlining options for change.

Embed with KiwiSaver

Fri, 15 Jan 2010 00:00:00 +1300

Thanks to New Zealand's best-loved finance writer, Mary Holm, I no longer have to scour the entire Capital Markets Taskforce (CMT) Report looking for the bits that interest me - professionally, that is.

Kiwis may not be such poor savers after all

Thu, 14 Jan 2010 00:00:00 +1300

Research by Treasury economists casts doubt on the conventional view that we are hopelessly improvident and feckless. The conventional view is founded on estimates of household saving rates which show households year after year spending more than they earn - $1.14 for every $1 of income in the year to March 2009. But saving rates are slippery things to grab hold of and measure.

Taskforce just the start for industry

Mon, 21 Dec 2009 00:00:00 +1300

The research house that slammed New Zealand's fund management industry with a D-rating says recommendations by the Capital Markets Development Taskforce are a good start but still won't bring New Zealand in line with the rest of the world.

BNZ parent trumps AMP's Axa Asia Pacific bid

Fri, 18 Dec 2009 00:00:00 +1300

BNZ will be back in the wealth management game in a big way if its parent company National Australia Bank's surprise deal to buy Axa Asia Pacific goes through. Earlier this week AMP and Paris-based Axa SA, which owns 53% of Axa Asia Pacific, boosted their offer for Axa Asia Pacific from A5.34 to A$6.22 per share, putting the company's value at A$12.85 billion.

Call for bolder default KiwiSaver

Thu, 17 Dec 2009 00:00:00 +1300

People who join KiwiSaver but don't choose which fund they want to be in could be put into a more aggressive fund under a recommendation made by the Capital Markets Development Taskforce. The taskforce yesterday released a 140-page report on its recommendations which included a raft of proposed changes for the managed fund industry, including the Government's KiwiSaver retirement scheme.

Financial Service Provider Act changes ‘provide relief for employers’

Fri, 11 Dec 2009 00:00:00 +1300

The recent introduction to parliament of the Financial Service Providers Bill will offer more certainty to employers who assist their employees with retirement savings arrangements.

Dairy Industry Superannuation Scheme wins top savings award

Fri, 04 Dec 2009 00:00:00 +1300

The Dairy Industry Superannuation Scheme and Forsyth Barr were the big winners at the Workplace Savings NZ Communication Awards 2009, held in Auckland on Thursday 3 December.

Call to clean up KiwiSaver sales

Wed, 02 Dec 2009 00:00:00 +1300

KiwiSaver providers have been warned about using standover tactics to stop people from changing schemes after complaints were made to the Government's superannuation watchdog.

Dunne: Tax bill brings super portability closer

Fri, 20 Nov 2009 00:00:00 +1300

A tax bill introduced to Parliament today by Revenue Minister Peter Dunne opens the way for New Zealanders returning home from Australia to bring their retirement savings with them.

The changes are part of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Bill.

New research quantifies "comfortable" retirement

Tue, 10 Nov 2009 00:00:00 +1300

New research across the Tasman has quantified the annual income needed by retirees to fund either a comfortable or modest standard of living in retirement.

New KiwiSaver award keeps tab on providers

Mon, 09 Nov 2009 00:00:00 +1300

David Ireland, Chairman of Workplace Savings NZ appeared on TV3's ASB Breakfast this morning to discuss our new "Peoples Choice KiwiSaver Award". Click on the link to view the interview with Michael Wilson.

NZ sitting on superannuation timebomb: Treasury

Fri, 30 Oct 2009 00:00:00 +1300

The Treasury has issued a "choose your poison" challenge to the Government, warning that if serious consideration is not given to pegging the costs of superannuation other public services will suffer.

Costs mount up for regulation

Wed, 28 Oct 2009 00:00:00 +1300

Authorised financial advisers (AFAs) will have to pay a minimum of almost $3,000 to comply in the first year of regulation, according to figures compiled by the Institute of Financial Advisers (IFA).

Inflation back under the spotlight

Fri, 16 Oct 2009 00:00:00 +1300

Surprisingly strong inflation in the September quarter has cast further doubt on the Reserve Bank's stated expectation that it will not start raising interest rates until the latter part of next year.

Treasury sets aside $816m for failures

Thu, 15 Oct 2009 00:00:00 +1300

The Treasury is bracing itself to pay out $816 million to investors under the Retail Deposit Guarantee within the next 12 months, having identified entities that are "more likely than not" to fail or otherwise trigger demands on the guarantee.

Minister changes QFE rules

Tue, 13 Oct 2009 00:00:00 +1300

Commerce Minister Simon Power has proposed a range of "technical tweaks" around the incoming Qualifying Financial Entity (QFE) regime, in a bid to meet industry concerns.

KiwiSaver: cheap at $26m in fees

Wed, 07 Oct 2009 00:00:00 +1300

Over the 12 months to March 31 this year, KiwiSaver providers collected a total of about $26 million in fees, according to my calculations.

Greenback tumbles on reports of its demise

Wed, 07 Oct 2009 00:00:00 +1300

The price of gold is surging on world markets amid fears that the old economic order, based on the supremacy of the US dollar, could be breaking down.

Tax Act receives Royal assent

Tue, 06 Oct 2009 00:00:00 +1300

Legislation introduced in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill has been enacted. The bill, introduced in July 2008, passed its final stages in Parliament last month and received Royal assent today.

Watchdog's new faces to focus on investors

Tue, 22 Sep 2009 00:00:00 +1200

Critics have welcomed a shake-up of the Securities Commission in which three new people will take up commissioner roles on the 11-member board.

New Commissioner for Financial Advisers appointed

Tue, 22 Sep 2009 00:00:00 +1200

Annabel Cotton has finished her short reign as Commissioner of Financial Advisers and been replaced by a Kiwi who has been heavily involved in financial services regulation in the United Kingdom.

The 2008 Tax Bill

Fri, 18 Sep 2009 00:00:00 +1200

The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill has passed its final stages in Parliament.

Introduced in July 2008, the omnibus tax bill gives effect to a number of business tax reforms, including a change to the KiwiSaver law allowing families of members who die to have quick access to funds in the dead member's account. With effect from 1 July 2007, up to $15,000 from a dead member's account can be paid out directly to nominated persons, without their having to await probate if the member left a will, or letters of administration if the member died intestate.

Recession is ‘probably’ over: Bernanke

Wed, 16 Sep 2009 00:00:00 +1200

Federal Reserve Chairman Ben Bernanke said on that the worst US recession since the Great Depression was probably over, but the recovery would be slow and it would take time to create new jobs.

KiwiSaver selling practices investigated

Fri, 04 Sep 2009 00:00:00 +1200

The Securities Commission is investigating complaints of illegal house-to-house marketing of KiwiSaver schemes. Under the Securities Act, house-to-house selling of securities is illegal unless they are life insurance contracts, Building Society or Co-operative securities. The Securities Commission uses the term house-to-house as oppose to door-to-door, as the restriction only refers to residential houses - distributors can go from business to business.

More changes for KiwiSaver, says English

Fri, 07 Aug 2009 00:00:00 +1200

At an Association of Superannuation Funds of New Zealand forum in Wellington, English reiterated that the Government did not intend making drastic changes to the Labour-initiated KiwiSaver scheme.

Forum to “de-mystify workplace savings”

Thu, 06 Aug 2009 00:00:00 +1200

De-mystifying the workplace savings experience is essential if New Zealanders are to understand the information provided to them, and the financial implications of the decisions they make.

Super portability agreement signed

Thu, 16 Jul 2009 00:00:00 +1200

Australia and New Zealand today signed a memorandum of understanding that paves the way for a new scheme that will allow transfers of retirement saving between certain Australian superannuation funds and New Zealand KiwiSaver funds. The scheme is expected to be in place by mid-2010.

Trans-Tasman Retirement Savings Portability

Wed, 15 Jul 2009 00:00:00 +1200

Giving New Zealanders returning permanently from Australia the ability to bring their compulsory retirement savings back home if they so choose is a positive move, according to the Association of Superannuation Funds of New Zealand (ASFONZ) which promotes workplace savings.

Govt to align investment and income tax rates

Tue, 07 Jul 2009 00:00:00 +1200

The Government is proposing to introduce legislation to align resident withholding tax (RWT) rates on interest and portfolio investment entities (PIE) tax rates with recent changes to personal income tax rates and the 30% company tax rate, Revenue Minister Peter Dunne announced today.

Communication key to financial literacy

Mon, 06 Jul 2009 00:00:00 +1200

One of the best things the savings industry could do to improve the public's understanding financial products was to improve their communication.

KiwiSaver turns two

Wed, 01 Jul 2009 00:00:00 +1200

KiwiSaver - and workplace savings as a whole - are at a cross roads. A big challenge for industry and policy makers is how best to encourage employers to remain engaged in assisting their employees with their savings.

New Australia-NZ double tax agreement signed

Mon, 29 Jun 2009 00:00:00 +1200

The introduction of a new double tax agreement between Australia and New Zealand took a major step forward with the signing today of an agreement that, once in force, will replace the existing 1995 double tax agreement.

Trans-Tasman savings portability – will the tax changes go far enough?

Wed, 24 Jun 2009 00:00:00 +1200

An announcement on the detail of a trans-Tasman retirement savings portability scheme may be imminent, with effect possibly as early as the first quarter of next year. The package, which represents the culmination of more than two years' work by officials, addresses some of the tax issues involved in creating a single trans-Tasman market for superannuation.

IRD cuts through AMP, PIMCO currency hedge

Wed, 24 Jun 2009 00:00:00 +1200

IRD has issued determinations for two international bond funds that run counter to an earlier ruling that allowed investors in the PIMCO Cayman Global Bond Fund ($NZ hedged), marketed primarily by Tower, to use the fair dividend rate (FDR) when calculating tax liabilities.

Crisis makes Kiwis more financially savvy

Mon, 22 Jun 2009 00:00:00 +1200

First the good news: Since the Retirement Commission last assessed our financial intelligence back in 2006, we have got smarter.

The bad news? It is mostly those who already know a fair bit about money, and have some to spare, who improved the most. Those at the opposite end, who could arguably benefit most from a boost, are stagnating.

First KiwiSaver fund to close

Fri, 05 Jun 2009 00:00:00 +1200

Eosaver, the KiwiSaver scheme owned by Australian firm Eo Financial Services, has decided the market is too crowded and, rather than look for an alternative, has become the first provider to walk out the door.

Taxation (Budget Tax Measures) Act 2009 has been enacted

Tue, 02 Jun 2009 00:00:00 +1200

Budget announcements - superannuation

Fri, 29 May 2009 00:00:00 +1200

Automatic Government contributions to the New Zealand Superannuation Fund will be suspended for 11 years. And KiwiSaver mortgage diversion facilities will be closed to new applicants from 1 June.

Union KiwiSaver scheme confirms Gareth Morgan tie up

Fri, 22 May 2009 00:00:00 +1200

IRIS KiwiSaver, which was set up by four unions, is to be wound up and Gareth Morgan KiwiSaver (GMK) will market a product to union members instead.

First KiwiSaver fund merger to be announced

Wed, 20 May 2009 00:00:00 +1200

The first big consolidation among the KiwiSaver providers is due to be unveiled tomorrow, with the union-backed IRIS scheme poised to make an announcement.

'Let Saver fund assets'

Mon, 18 May 2009 00:00:00 +1200

Transmission Gully could be one of a host of shelved projects to get the green light under a radical idea that would see KiwiSaver funds channelled into long-term strategic infrastructure assets.

Break-even point for saving-scheme providers pushed past five years

Mon, 11 May 2009 00:00:00 +1200

Talk to any major KiwiSaver provider and they will say setting up the Government superannuation saving scheme has been a hugely expensive exercise.

Professionals split over KiwiSaver

Thu, 16 Apr 2009 00:00:00 +1200

Finance and accounting professionals are split over KiwiSaver, with almost half of them not contributing to the scheme, according to results from a survey carried out by recruitment firm Robert Half.

A place for workplace savings?

Thu, 09 Apr 2009 00:00:00 +1200

Authored by David Ireland, ASFONZ Council Chair, this article is published in the latest edition of Human Resources, the magazine of the HRINZ.

Click here to download the full article (in PDF format).

KiwiSaver hits the magic million

Thu, 02 Apr 2009 00:00:00 +1300

More than one million New Zealanders are now saving for their retirement through KiwiSaver, just 21 months after it started, Revenue Minister Peter Dunne announced today.

Super reports stress long term

Thu, 02 Apr 2009 00:00:00 +1300

AUSTRALIA - Superannuation reports will make long-term returns much more prominent on statements in order to highlight the long term nature of the investments. From now on, all super report statements will be required to show five-year returns in member statements with ten year returns added as of next year.

Greater flexibility for KiwiSavers comes at a cost

Wed, 01 Apr 2009 00:00:00 +1300

Reducing the minimum KiwiSaver employee contribution from 4% to 2% provides some welcome flexibility for KiwiSavers and their employers, but comes at a cost that may ultimately detract from the end savings outcome.

That's according to the Association of Superannuation Funds of New Zealand (ASFONZ) which promotes workplace savings.

The changes take effect from 1 April.

ASFONZ Chair David Ireland says reducing the minimum member contribution rate to 2% is generally regarded as a positive step that makes KiwiSaver more affordable for workers to both join up and to continue saving; more...

Dunne: many investing in overseas companies better off under FDR rules

Wed, 01 Apr 2009 00:00:00 +1300

Recent media reports have revealed confusion about how individual investors in overseas companies are taxed under the new fair dividend rate (FDR) rules that came into force in 2007, Revenue Minister Peter Dunne said today.

KiwiSaver changes into lower gear

Mon, 30 Mar 2009 00:00:00 +1300

KiwiSaver Mark IV starts on Wednesday for nearly one million people who face a raft of changes expected to make it easier for more people to join while opening up options for existing members.

Regs wait for Commissioner

Fri, 27 Mar 2009 00:00:00 +1300

The progress of financial advisory regulations appears to have stalled with the Ministry of Economic Development (MED) yet to name the Commissioner of Financial Advisers.

Government review to include corporate trustees

Wed, 25 Mar 2009 00:00:00 +1300

Issues raised in a recent Companies Office report about the role of corporate trustees in failed finance companies are to be addressed as part of a significant review into the Securities Act, Commerce Minister Simon Power said today.

Markets picking big rate cut

Fri, 06 Mar 2009 00:00:00 +1300

Wholesale money markets are picking Reserve Bank governor Alan Bollard will drop the official cash rate by 75-100 basis points in his March 12 announcement.

That would take the OCR to 2.5-2.75% and put further downward pressure on mortgage rates.

Don't make us play it safe, says fund

Fri, 06 Mar 2009 00:00:00 +1300

Messing with the investment psyche of the New Zealand Superannuation Fund by throwing money at risk-free assets such as cash or bonds will doom the fund to failure, warns its chief executive Adrian Orr.

Budget on May 28

Wed, 18 Feb 2009 00:00:00 +1300

Finance Minister Bill English says his first Budget will be delivered on May 28. Mr English told a select committee today New Zealand was facing tough economic circumstances and the extent of the world wide recession was still unknown.

Global slump 'worse than Depression'

Wed, 18 Feb 2009 00:00:00 +1300

The global market downturn is worse than the Great Depression of the 1930s, according to Auckland investment consultant and superannuation expert Jonathan Eriksen, though New Zealand is well placed.

Big rate cut on cards after fall in confidence

Wed, 14 Jan 2009 00:00:00 +1300

Expectations are growing that the Reserve Bank will cut the official cash rate by another full percentage point on January 29 after business confidence plunged to a 39-year low.

Building a trusted financial sector

Thu, 18 Dec 2008 00:00:00 +1300

Retirement Commissioner Dianna Crossan has spelt out to her new minister a raft of issues which are hurting the financial sector.

Scrooge on KiwiSaver, Santa on tax

Wed, 10 Dec 2008 00:00:00 +1300

Promised tax cuts are on the way as the Government pushes them through Parliament under urgency but Prime Minister John Key is under fire for being a Christmas grinch as KiwiSaver and workplace law changes bite.

KiwiSaver change should be no suprise - English

Wed, 10 Dec 2008 00:00:00 +1300

It should be no surprise that employees in KiwiSaver with bosses who pay above the current minimum will have to pay extra tax, Finance Minister Bill English said this morning.

KiwiSaver employment law changes welcomed

Tue, 09 Dec 2008 00:00:00 +1300

The industry association promoting workplace superannuation says it is pleased at the speed with which the Government is moving to repeal recent employment law amendments affecting KiwiSaver.

The amendments, introduced in September by the previous Government through the Employment Relations Act, were aimed at keeping KiwiSaver contributions out of any total remuneration package calculations.

The National Party has today introduced changes to reform KiwiSaver, expected to be passed tomorrow under urgency.

The chair of the Association of Superannuation Funds of New Zealand (ASFONZ), David Ireland, says the changes to employment laws are a positive step for workplace savings.

"Under the proposed changes there is now flexibility for employers and employees to agree how they would like compulsory employer contributions treated.

"This will benefit employers trying to manage their salary costs in these difficult times and encourage participation in workplace savings beyond the statutory minimum.

Mr Ireland says National has now pulled back from the 2% of salary cap on the member tax credit proposed in its pre-election policy announcement.

"This means all employee KiwiSavers will get the same opportunity to benefit from the credit regardless of their income level.

"This is a real positive for both the level of workplace savings and for avoiding the addition of a further complication in the administration of KiwiSaver schemes.

"However we are dismayed that outside the essential ERA changes, a further round of changes to KiwiSaver design has been rushed into Parliament with minimal consultation and virtually no opportunity for those involved to respond.

"Our primary concern is with the impact the removal of the fee subsidy will have, particularly for those with small account balances for whom the benefit of the subsidy was significant," says Mr Ireland.

Tax bill introduced

Tue, 09 Dec 2008 00:00:00 +1300

A taxation bill introduced today gives effect to changes announced in the 2008 general election campaign:

A three-year programme of changes to personal income tax rates and thresholds from 1 April 2009
Introduction of an independent earner tax credit of $10 a week from 1 April 2009, increasing to $15 a week from 1 April 2010
Repeal of the R&D tax credit from the 2009-10 income year
Changes to KiwiSaver from 1 April 2009, including a reduced employee contribution rate of 2%, capping of compulsory employer contributions at 2%, and discontinuing the employer tax credit and the fee subsidy.

The bill received its first reading under urgency. For more information on the proposed measures see the Taxation (Urgent Measures and Annual Rates) Bill and the media statements (with links to Beehive for related material).

KiwiSaver changes ‘a priority’ for National Government

Fri, 14 Nov 2008 00:00:00 +1300

The industry association promoting workplace superannuation says a priority for the incoming Government is to repeal the latest amendments to KiwiSaver, and has released a submission detailing its desired law reforms.

To read more, click here.

Read the submission, click here.

KiwiSaver tax-take comment a case of the glass is half empty

Wed, 05 Nov 2008 00:00:00 +1300

The Association promoting workplace superannuation in New Zealand says it is generally comfortable with the framework for taxation of investment savings currently in place.

The Association of Superannuation Funds of New Zealand (ASFONZ) says KiwiSaver investments are taxed on exactly the same basis as any other form of collective investment vehicle.

That follows a warning on KiwiSaver tax from the investment consultancy firm, Mercer. It says KiwiSaver investors will pay more tax on their investment earnings than the incentives given to them by the Government unless the rates are lowered.

And Mercer says under the current model, the incentives to join KiwiSaver would be wiped out over the lifetime of a saver as they would pay more tax on investment earnings.

KPMG Tax partner and ASFONZ councilor Murray Sarelius says KiwiSavers – just like investors in any other form of collective investment vehicle - face tax on their investment earnings.

“However that doesn't undermine the benefit of the incentives provided by the Crown to contribute to KiwiSaver, or mean that KiwiSavers are disadvantaged.

“The incentives are significant and should not be compared with the amount of tax you pay on your KiwiSaver investment over the period you invest,” he says.

ASFONZ chair David Ireland of law firm Kensington Swan agrees: “They are two different things. A tax on KiwiSaver earnings doesn’t wipe out the incentives you receive. You get to keep those. If you are fortunate enough to make a positive investment return then there will be tax to pay on that return – that’s the way our tax system works.

“Lowering the tax rate on retirement savings might be on our wish list, but we have other targets that are more realistic in the short term that are higher on that list.”

Mr Ireland says whatever the outcome of the General Election this weekend, the main incentives to participate in KiwiSaver seem set to remain.

KiwiSaver Performance Survey results

Thu, 16 Oct 2008 00:00:00 +1300

The range of returns from KiwiSaver funds is very wide according to the first performance report from research house Morningstar.

Fed-up boss goes back to the rules on KiwiSaver

Tue, 14 Oct 2008 00:00:00 +1300

One of New Zealand's biggest companies says it is so fed up with frequent changes to KiwiSaver that it will not make any further promises to its staff about the scheme until it settles down.

Fletcher Building, which employs 8000 people......

A devil in National's detail

Tue, 14 Oct 2008 00:00:00 +1300

National's proposed KiwiSaver changes have been well and truly analysed by now but one factor which doesn't appear to have been considered yet is the tight timeframe in which National are proposing to introduce the changes.

If elected they want to have the proposed changes in place by April 2009.

National Party “removes KiwiSaver uncertainty”

Thu, 09 Oct 2008 00:00:00 +1300

The Association promoting workplace superannuation in New Zealand says the National Party's plans for KiwiSaver allays fears the scheme would be rendered unattractive under a National Government.

The Association of Superannuation Funds of New Zealand (ASFONZ) says National's policy should continue to improve the overall health of workplace savings.

The National Party has promised that instead of being forced to contribute 4 per cent of an employee's gross salary into KiwiSaver in future years, employers would have to give only 2 percent.

The trade off is the removal of the employer tax credit, currently worth up to $20 per week, to help subsidise employer contributions.

ASFONZ chair David Ireland says the key foundations on which KiwiSaver has been developed would remain unaffected by the policy, and the main incentives to participate remain.

"The proposed changes provide a more sustainable path for both KiwiSavers and employers in the challenging economic climate that we now face.

"Reducing the minimum contribution to 2% is a change we endorse to make the scheme more affordable to all, and removes a disincentive to join that limits its accessibility for some workers.

"It is also important to acknowledge that for many, saving 2% of salary, even if matched by employer contributions, may be insufficient to fund a comfortable retirement.

"In particular ASFONZ welcomes National's plan to scrap the ill-considered amendments to the ERA rushed through Parliament last month that denied the right to factor in employer KiwiSaver contributions to employment negotiations.

"Those changes may have compromised the overall level of retirement savings made through the workplace.

"Regardless of the outcome of the election, ASFONZ is committed to working with whoever holds power to rectify the potential harm inflicted on workplace savings by the latest ERA amendments," says Mr Ireland.

KiwiSaver survey shows higher levels of understanding

Mon, 06 Oct 2008 00:00:00 +1300

Despite global financial market turmoil more New Zealanders understand what KiwiSaver is all about and are using it to save for their retirement, a new survey shows.

Financial Adviser Bill changes ‘provide certainty for employers’

Wed, 24 Sep 2008 00:00:00 +1200

The Association promoting workplace superannuation in New Zealand says it is pleased the Government is providing more certainty for employers through the Financial Advisers Bill, passed under urgency on 24 September.

The new law, designed to toughen protection for investors and crack down on advisers, was only reported back to the House a fortnight earlier.

But the new chair of the Association of Superannuation Funds of New Zealand (ASFONZ), David Ireland of law firm Kensington Swan, says one aspect remained of concern.

"Our primary concern was for employers who make savings arrangements - including KiwiSaver - available to their employees through the workplace, and who discuss the terms of those arrangements with staff members.

The question is whether these people should be considered to be providing ‘financial advice' when doing so.

"We have maintained throughout that this group should be excluded from the definition of a financial adviser - unless they are actually expressing an opinion or recommendation as to suitability of a particular financial product."

Following a meeting between ASFONZ representatives and the Minister, Hon Lianne Dalziel, changes were incorporated into the legislation before it was passed.

Mr Ireland says he is pleased some of the concerns of ASFONZ were taken on board.

"We wanted a pragmatic solution that will not discourage employers from being involved in workplace savings - but at the same time will not undermine the objectives of the legislation by encouraging employers to dabble in providing actual financial advice without the appropriate level of regulatory oversight.

"Some definition problems remain, but the changes introduced at the last minute are largely positive.

"They mean employers will have more certainty as to how far they can go in assisting employees with their workplace savings arrangements without needing to be registered as financial advisers," says Mr Ireland.

More mortgages qualify for KiwiSaver mortgage diversion

Mon, 15 Sep 2008 00:00:00 +1200

Amendments to the mortgage diversion regulations signed by Order in Council today allow more types of mortgages to qualify for the mortgage diversion facility.

Offsetting Employer KiwiSaver Contributions

Fri, 12 Sep 2008 00:00:00 +1200

On 3 September a rushed amendment to the Employment Relations Act was passed that impacts on every employer offsetting their contributions to KiwiSaver within the remuneration package paid to employees. The prospect of total remuneration arrangements being under threat had been signalled as long ago as July - what had not been anticipated had been the lack of consultation that occurred with the wording of the amendments made, and the possible far reaching implications.

In brief, the changes were tacked into the Employment Relations (Breaks and Infant Feeding) Amendment Bill just as it was about to be passed. They result in employees having ground for a personal grievance if their employment is adversely affected because they are a KiwiSaver or complying superannuation fund member. This is generally accepted as meaning that if your employer reduces your take home pay to take into account its compulsory KiwiSaver contribution, resulting in you getting less in the hand than someone who is not a KiwiSaver, you can bring a personal grievance claim. That had been anticipated. The law amendment outlaws total remuneration arrangements to that extent, but was predictable in light of earlier announcements by the Minister of Labour.

The concern now is that with the wide scope of what may be included as an adverse affect, the reform goes beyond that anticipated position. Many employers are now in the position of needing to revisit the terms of employment they are offering, even though they would not previously have considered themselves a target for this reform. And there is no transition period - agreements entered into on or after 2 September 2008 are caught, as are variations to older agreements.

ASFONZ is currently working hard as a matter of urgency with industry experts and relevant officials to gain some greater clarity around the intended impact of this reform upon employer superannuation scheme contributions. In light of earlier political comments made, we understand that the amendment was not intended to cut across workplace superannuation arrangements. Unfortunately, the wording of the legislation leaves the position open to argument, and experts are divided. We are hoping to get some official clarity within the next few days, and will issue a newsflash at that time. For now, we urge our employer members to take a cautious approach with respect to setting new employment arrangements and varying existing arrangments where any form of adjustment to take into account KiwiSaver contributions is involved.

OCR reduced to 7.5%

Thu, 11 Sep 2008 00:00:00 +1200

The Reserve Bank today reduced the official cash rate (OCR) by 50 basis points from 8.0% to 7.5%.

2008 Conference Presentation Now Online

Thu, 11 Sep 2008 00:00:00 +1200

Our two day ASFONZ 2008 National Conference & Super Expo was a huge success!

Thank you to all the delegates who joined us. Most Conference presentations are now available on the web site.

To review the presentations click here.

Credit crisis: not all bad news

Wed, 03 Sep 2008 00:00:00 +1200

Regulators will seek to impose a 'speed limit' on the financial economy as they pay the price of cleaning up after the credit crisis, Medley Global Advisors analyst Paul Silk says.

Address at the Institute of Financial Advisors Annual Conference Success Forum 2008

Fri, 25 Jul 2008 00:00:00 +1200

Speech by Commerce Minister Lianne Dalziel to Institute of Financial Adviser, Christchurch 10.00am, 25 July 2008

July 2008 SuperNews

Thu, 24 Jul 2008 00:00:00 +1200

Read the latest edition of SuperNews

Consensus grows on financial advisers bill

Thu, 24 Jul 2008 00:00:00 +1200

MPs and the finance sector appear to be reaching a consensus on regulation of financial advisers. Parliament's finance select committee heard submissions on the finance advisers' bill yesterday.

Seniors protest against rules on foreign pensions

Thu, 24 Jul 2008 00:00:00 +1200

Septuagenarian protesters greeted Social Development Minister Ruth Dyson at an Auckland Grey Power meeting yesterday with placards demanding their rights to foreign pensions.

KiwiSaver law change to remove conflict

Wed, 23 Jul 2008 00:00:00 +1200

Labour Minister Trevor Mallard says KiwiSaver legislation will be altered to ensure there is no conflict with employment law when workers and bosses thrash out remuneration packages.

The minister last week moved to make it unlawful for employers to pay different amounts to KiwiSaver members and non-members amid concerns a minority were deducting employees' wages but pocketing tax credits.

Agreement expected on trans-Tasman retirement savings portability by end of October

Thu, 17 Jul 2008 00:00:00 +1200

Officials from Australia and New Zealand will finalise the text of a deal by the end of October that will facilitate the portability of private retirement savings across the Tasman, Australian Treasurer Wayne Swan and New Zealand Finance Minister Michael Cullen said at the conclusion of their first formal bilateral talks, which were held at Parliament in Wellington today.

"At our meeting today we surveyed the good progress that senior officials from the two countries have made on the design of some practical options for improving the portability of savings between Australian and New Zealand retirement savings schemes".

"We are now confident that KiwiSaver and complying Australian superannuation accounts are mutually compatible and that outstanding policy issues can be addressed in time for a Memorandum of Understanding to be ready for signing by the end of October," the Ministers said.

The basic framework has been agreed, but officials, in conjuction with local financial services industries, still need to design the domestic arrangements in either country.

Progress on the issue would mark another important step forward in efforts to facilitate the free-flow of people between Australia and New Zealand.

"Both governments are committed to all measures that make the Australasian economy a more competitive place in which to work, invest and to do business, and we are delighted that we have been able to make such quick progress in this area," the Ministers said.

Further background information for reporters that seek some more context

The New Zealand and Australian labour, financial, and goods and services markets are highly integrated by international standards and the Single Economic Market (SEM) policy agenda builds on the open trading environment created by the Closer Economic Relations (CER) and related agreements.

The SEM agenda aims to improve the operation of trans-Tasman markets by addressing behind-the-border impediments to trade and the free movement of people.

The introduction of the New Zealand KiwiSaver scheme in July 2007 presented an opportunity for both countries to explore the potential for further retirement savings integration. Improved savings portability is expected to reduce impediments to trans-Tasman labour market mobility.

Currently, personal retirement savings accumulated in Australia cannot be taken to New Zealand before retirement is reached. This restriction was historically attributable to both an automatic ability of New Zealanders to retire in Australia and the absence of a retirement savings scheme in New Zealand with equivalent preservation requirements.

The inability of individuals to streamline and consolidate their personal retirement savings has potentially inhibited the free flow of workers between the two countries and some individuals may have historically ended up paying multiple fees for the administration of their savings accounts.

The Working Group, which was established to examine this issue following the meeting between the New Zealand Minister of Finance and the former Australian Treasurer on 29 January 2007, recently reported its recommendations to Ministers.

Scheme Design

Ministers agreed that all retirement savings transferred between the two countries, via the new portability regime, would be ring-fenced within domestic pension funds and tagged as being sourced from their country of origin. Ring-fencing administratively separates funds in order to allow country specific rules to be applied. For example, savings originating from Australia and transferred to a New Zealand KiwiSaver account will be tagged as being "Australian‑sourced".

Country specific requirements will be designed to address policy differentials between the two countries. Differences in preservation requirements were given special attention. For example, Australian funds will not be able to be used to purchase a first home as this KiwiSaver provision is not allowed under current Australian legislation.

The specific details design of domestic arrangements still needs to be finalised. Officials will engage with local industry in the next couple of months to ensure that compliance costs are kept to a minimum.

Australia, NZ agree to progress work on mutual recognition of imputation and franking credits

Thu, 17 Jul 2008 00:00:00 +1200

The Australian and New Zealand governments are open to the idea of moving toward mutual recognition of imputation and franking credits between firms that invest in each other's country, Australian Treasurer Wayne Swan and New Zealand Finance Minister Michael Cullen said today.

Britain studies KiwiSaver scheme

Mon, 14 Jul 2008 00:00:00 +1200

KiwiSaver has been subjected to a rigorous examination by retirement specialists in Britain to see if lessons can be learned before a new scheme is rolled out to Britons. In a move similar to that taken by the New Zealand Government with KiwiSaver, from 2012 British workers not already in occupational pension schemes will be enrolled into "personal accounts" unless they opt out.

Bosses' KiwiSaver loophole plugged

Mon, 14 Jul 2008 00:00:00 +1200

Employers will no longer be allowed to pay less to KiwiSaver employees than to those not in the scheme, under a move to be announced today by Labour Minister Trevor Mallard. "There is no way that it is fair for one employee to be paid less each week in their take-home pay than an employee doing the same tasks.....

Evaluation of the impacts of KiwiSaver on New Zealand’s superannuation market

Fri, 04 Jul 2008 00:00:00 +1200

The Ministry of Economic Development has commenced a study of the impacts of KiwiSaver on New Zealand's superannuation market and the wider financial sector. As part of this study a number of industry participants will be asked to take part in a workshop or interview. Read more....

Happy Birthday KiwiSaver

Tue, 01 Jul 2008 00:00:00 +1200

It's been one year since KiwiSaver was let loose on New Zealand and Finance Minister Michael Cullen and Revenue Minister Peter Dunne are celebrating more than 718,000 members joining up.

Don’t Risk Your Members Dying Poor – Encourage Them to Decumulate!

Mon, 30 Jun 2008 00:00:00 +1200

Ever wondered what you'll be doing during retirement? Or where you'll be? A significant number of New Zealanders see themselves buying a caravan and traveling around the country, enjoying their new found freedom...but what if their planned retirement income is depleted before they hit the road? Read more.

Budget 2008

Thu, 22 May 2008 00:00:00 +1200

The Minister of Finance Hon. Dr. Michael Cullen today delivered his 9^th consecutive budget. The government is introducing a $10.6 billion programme of tax cuts from 1 October 2008, with further changes scheduled to take effects from 1 April 2010 and 1 April 2011.

What impacts will this have for New Zealand employers? What will it mean for the taxation of investment income, especially from a PIE investment? What is intended to happen to better protect investors?

To learn more from today's budget announcements please click here

KiwiSavers 'likely to opt for higher-risk options'

Mon, 12 May 2008 00:00:00 +1200

Conservative funds will be ditched for higher-risk options as KiwiSavers adopt a more hands-on approach to investing in the scheme, say major providers.

Symposium: Retirement Income & Policies

Wed, 16 Apr 2008 00:00:00 +1200

The Auckland University Retirement Policy & Research Centre in association with the Retirement Commission and the Auckland Business School are holding a one-day symposium in Auckland.

Jail threat for KiwiSaver providers who mislead

Thu, 10 Apr 2008 00:00:00 +1200

KiwiSaver providers who mislead investors over their commitment to responsible investment could face fines of up to $300,000 or five years in prison.

BNZ Foresees 10c fall in Kiwi

Mon, 31 Mar 2008 00:00:00 +1300

Global economic problems will cause the New Zealand dollar to plunge against its US counterpart, a leading economist says.

Lifting lid on alluring box of trinkets

Sat, 29 Mar 2008 00:00:00 +1300

Come Tuesday, the "box of trinkets" offered to New Zealanders to entice them into the Government-subsidised KiwiSaver gets heavier.

Guidance Note on Responsible Investment Disclosure

Wed, 26 Mar 2008 00:00:00 +1300

For a copy of the Securities Commission's Guidance Note on Responsible Investment by KiwiSaver Scheme Providers which was published on Thursday, 20 March 2006, click here.

Piggy puts Nats in a stew

Tue, 25 Mar 2008 00:00:00 +1300

It's an offer Kiwis are finding hard to refuse. You put aside four cents in every dollar from your before-tax pay and the Government matches it with a tax break to a maximum of $20 a week.

Nats silent on KiwiSaver Tax

Wed, 19 Mar 2008 00:00:00 +1300

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.

Just 13pc 'embrace' KiwiSaver, poll finds

Tue, 18 Mar 2008 00:00:00 +1300

Despite a surge in KiwiSaver enrolments, a large number of people are still sceptical of the scheme.

National pressed on KiwiSaver policy

Thu, 13 Mar 2008 00:00:00 +1300

National is under pressure to say whether it will keep KiwiSaver as combined nest eggs head toward $1 billion after just eight months and young workers embrace the scheme.

Employer critical of KiwiSaver 'red tape headaches'

Tue, 11 Mar 2008 00:00:00 +1300

An employers' group is irate about what it claims are anomalies and complexities in the law governing KiwiSaver, causing red tape headaches for bosses.

SuperNews - February 2008

Thu, 28 Feb 2008 00:00:00 +1300

Regulations passed under the Securities Markets Amendment Act 2006 will repeal the Investment Advisers (Disclosure) Act 1996 with effect from 29 February 2008, replacing it with new disclosure rules for investment advisers.

Advisers Beware

Wed, 20 Feb 2008 00:00:00 +1300

Financial advisers face a tough year, says ING head of sales and marketing Wayne Becker – and he predicts the government may fast-track some of its planned new regulations in response to public pressure.

Putting spotlight on financial advisers

Wed, 20 Feb 2008 00:00:00 +1300

The Securities Commission will move fast to ensure strict new disclosure rules - making financial advisers' economic incentives transparent to their clients - are being followed.

Adviser regulation a step closer

Wed, 20 Feb 2008 00:00:00 +1300

Financial Advisors will be held to higher standards of competency, accountability and disclosure under the Financial Advisors Bill sent to the Finance and Expenditure Select Committee yesterday, Commerce Minister Lianne Dalziel says.

Plug for Kiwi fund managers

Mon, 18 Feb 2008 00:00:00 +1300

New Zealand's financial sector would be stronger if more superannuation savings went to fund managers based here rather than offshore, Christchurch's George Bayley says.

KiwiSaver 'will change plans for retirement'

Wed, 13 Feb 2008 00:00:00 +1300

Less importance will be placed on home ownership at retirement due to KiwiSaver and housing affordability, Mercer investment managers and consultants predict.

A Budget for a sustainable, prosperous New Zealand

Wed, 13 Feb 2008 00:00:00 +1300

Finance Minister Michael Cullen will deliver his ninth Budget on 22 May 2008.

KiwiSaver breaks through 40,000 barrier

Thu, 07 Feb 2008 00:00:00 +1300

The number of New Zealanders joining KiwiSaver continues to beat initial expectations, finance minister Michael Cullen said today.

Merchants of KiwiSaver doom are wrong

Wed, 30 Jan 2008 00:00:00 +1300

Commentary: Headlines generated by commentators suggesting that KiwiSaver portfolios are taking a beating and that investors would be better keeping their money under the mattress and out of growth assets like shares are financially naive and simply wrong.

Delays dog processing of KiwiSaver funds

Mon, 28 Jan 2008 00:00:00 +1300

Thousands of KiwiSaver contributions made between July and September have not been processed.

Correction not a crash, say analysts

Thu, 17 Jan 2008 00:00:00 +1300

Brokers and investment analysts are still playing down the slide in the sharemarket, but the trend is undeniable as the NZX has opened lower yet again this morning - its incredible 11th straight session of losses in a row.

Bank tips two more interest rate rises

Wed, 16 Jan 2008 00:00:00 +1300

The prospect that inflation will continue to rise has prompted Westpac economists to predict the central bank will lift the official cash rate twice this year to an eye-watering 8.75 per cent.

KiwiSaver fund's big return bucks trend

Tue, 15 Jan 2008 00:00:00 +1300

An Auckland fund manager is claiming to have made one of the best returns on a KiwiSaver fund, contrasting the performance of others who have lost money since the scheme was launched last year.

Social and ethical attitudes crucial

Mon, 14 Jan 2008 00:00:00 +1300

During recent years, investors have increasingly considered environmental, social, and broad governance issues in their investment decisions, over and above a narrow focus on financial return.

The new KiwiSaver Legislation

Thu, 03 Jan 2008 00:00:00 +1300

Special report from the Policy Advice Division of Inland Revenue.

Tax Bill’s KiwiSaver provisions to be fine-tuned

Tue, 11 Dec 2007 00:00:00 +1300

The government has introduced a number of minor changes to fine-tune KiwiSaver legislation in the taxation bill currently before Parliament.

http://www.taxpolicy.ird.govt.nz/publications/files/sop167.pdf

Communication Awards: Air New Zealand KoruSaver cleans up

Thu, 29 Nov 2007 00:00:00 +1300

At the 2007 ASFONZ Communications Awards ceremony held in Wellington last night Air New Zealand cleaned-up, winning three of the five awards including the Supreme Award for Excellence.

We need to get the source text of http://www.asfonz.org.nz/whats_new/Air%20New%20Zealand%20KoruSaver%20cleans%20up.pdf from somewhere else and paste into this article.

KIWISAVER - How do I choose?

Fri, 16 Nov 2007 00:00:00 +1300

KiwiSaver information for employers & individuals. KiwiSaver product and fee information as well as indicative investment performance.

Select committee reports on tax bill

Thu, 15 Nov 2007 00:00:00 +1300

The Finance and Expenditure Committee has reported to Parliament on the Taxation (Annual Rates, Business Taxation, KiwiSaver, and Remedial Matters) Bill.

http://www.taxpolicy.ird.govt.nz/

Kiwis keep it real on hopes for retirement

Wed, 24 Oct 2007 00:00:00 +1300

Research by default KiwiSaver provider Mercer shows that while we would prefer to retire at the age of 57, most of us don't expect to stop working until at least 65.

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10471685