Changes to KiwiSaver

Saturday, 09 May 2009 12:35 Graham

The theindependentkiwisaver.co.nz web site has been updated with the recent government changes which came into force from the 1st of April 2009.

The key aspects of these changes are:

the minimum employee contribution rate is reduced from 4% to 2% of your gross pay
your employer's contribution is capped at 2% of your gross pay
the annual $40 government fee subsidy is now no longer available

Note:

If you want to reduce the minimum payment then you must advise your employer.
Most importantly if you are earning less than $52,150 and choose to contribute 2% then your total contribution will not reach $1,042 which is required to receive the maximum member tax credit of $1,042 from the government. So make sure you make a manual topup so your contribution reaches $1,042.

Comments

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William Hughes-Games - Kiwisaver tax base

|125.239.168.xxx |13-12-2009 07:39:58

The government contribution to our KiwiSaver funds is our own money given back
to us. The government then has to either raise taxes somewhere else, lower
services or put our children further into debt. There is no need for such
bribes. A simple change in the tax regime around KiwiSaver would make it a
worthwhile investment which would siphon money away from housing
speculation.
http://mtkass.blogspot.com/2007/07/k
iwisaver-good-for-new-zealand.html