Tag Archives: taxes

Annual Tax on KiwiSaver Too High

Today’s must read:
KiwiSaver tax rates need fixing, world’s ‘most punitive’, says savings lobby

A new article in the National Business Review this morning highlights how high the taxes are on KiwiSaver accounts. When KiwiSaver was set up, the government decided to use an annual member tax credit incentive of $1042, but now only $521, instead of a reduced tax rate on earnings in KiwiSaver accounts. Back when balances were small, this was probably preferable, but now that many accounts have gotten larger this $521 a year is not so great. KiwiSaver schemes are taxed the same as PIE funds, so at the investors PIR of 10.5%, 17.5%, or 28%. Continue reading Annual Tax on KiwiSaver Too High