KiwiSaver tax

A proposal to add 15% GST to services supplied by investment managers to managed funds and retirement schemes was introduced to Parliament on Tuesday by revenue ...

And after 25 years of regular contributions, the investor who built up a $862,308 balance under the current tax settings, would pay $21,179 extra in tax, leaving them with a balance of $841,128. Fund balances for non-KiwiSaver managed funds of $1.67t, would be lowered by $83b. In a briefing paper to Parker, the Inland Revenue Department (IRD) has proposed repealing an existing GST exemption for the management of a retirement scheme to ensure certainty and consistency in the treatment for management services, and "simplify" compliance.

It could cost people with KiwiSaver funds around $20000 by the time they reach retirement age.

[more tax revenue for the government](Minister of Revenue David Parker said the change could mean more tax revenue for the government in coming years, but the move was made for the sake of consistency.) in coming years, but the move was made for the sake of consistency. Richard Klipin, chief executive of the Financial Services Council, told Breakfast: "The change that was announced yesterday ... Klipin said there is a cost of living crisis in New Zealand right now, and the Government should be supporting confidence in KiwiSaver "because the more you tinker with the system, the less confidence people have".

If Govt had been more proactive about announcing the change there might not be so much confusion circulating, one fund manager says.

Robyn Walker, a tax partner at Deloitte, said there were very few things that were not already subject to GST. “But the numbers are significant, it deserves this scrutiny.” “The good news is that this all shows how passionate people are about KiwiSaver… One of the significant problems with KiwiSaver is that people are not saving enough. It was not noted in the press release issued by Revenue Minister David Parker to accompany the bill’s introduction. At the moment the fees members pay, which are largely set as a percentage of a member’s balance, do not include any GST.

The New Zealand Taxpayers' Union says it's despicable that a Government that promised not to introduce new taxes has introduced a $103 billion tax - on ...

Financial services have always been GST-free, and whether a person invests in term deposits or KiwiSaver funds, the treatment should be the same. Every extra dollar taken by the Government means far less available for retirement.” But instead of a helping hand, the Government’s putting its grubby hands deeper into our KiwiSavers.”

"It's a decrease in your KiwiSaver balance of $20,000," said Allan Bullot, a tax specialist at financial advisory firm Deloitte. "It's a sledgehammer and ...

National leader Christopher Luxon sat down with Stuff's Luke Malpass to talk about a range of topics, including the Government's proposals to tax KiwiSaver.

They work for you, not the parties or people in power. Whatever your politics, we can all agree: New Zealand is better off when Kiwis are well-informed. *

The Inland Revenue has calculated that the proposed change will add around $225 million a year to the government's tax revenues. The Government did not announce ...

IRD warned the Government the rule change will simply be passed on to savers, costing people thousands of dollars in lost savings over their lifetimes. "We acknowledge that applying GST equally to all funds would slightly increase overall taxation. If investor fees are increased, this will reduce after-fee returns and therefore the total amounts that are reinvested and saved over time". This amount would increase by about 10 per cent a year as the economy and KiwiSaver funds grew. over that time the market will respond accordingly. Currently the tax treatment of these funds varies. to fleece New Zealanders of their hard-earned cash". "This is about correcting an anomaly that really has allowed some of those very large managed funds to get away with it. "This is such a bad idea; a retirement tax when we're trying to encourage people into KiwiSaver doesn't make any sense," Luxon said. Non-KiwiSaver funds will be hit by $83b. "People are so angry about it. The Government did not announce the changes.

National leader Christopher Luxon wants plans to charge GST on KiwiSaver fees scrapped, saying he was getting complaints until 2am today.

"If you go and look at social media today, many people are thinking this is a direct tax on their investment in KiwiSaver .... But over time that does compound, particularly over a period of 20, 30, 40 years. "Out there in the real world with all the other countries New Zealand is not top of mind anymore and we have to establish it in that way." ["This is creating a lot of confusion" - Kernel Wealth chief executive Derek Anderson duration 8:53](/national/programmes/morningreport/audio/2018856810/government-considers-charging-gst-on-kiwisaver-fund-fees) ["This is creating a lot of confusion" - Kernel Wealth chief executive Derek Anderson](/national/programmes/morningreport/audio/2018856810/government-considers-charging-gst-on-kiwisaver-fund-fees) The bigger issue was that the government did not have a plan to handle inflation and the cost of living crisis and was also making a poor fist of immigration settings. "This isn't GST on their KiwiSaver contributions or on their KiwiSaver balance, it is GST on the management fees they pay, and those management fees can range from a quarter of a percent up to sort of 1.5 percent. ["The more you tax it the less it will become fit for purpose" - Financial Services Council chief executive Richard Klipin duration 5:52](/national/programmes/morningreport/audio/2018856792/finanical-services-council-criticises-possible-kiwisaver-change) ["The more you tax it the less it will become fit for purpose" - Financial Services Council chief executive Richard Klipin](/national/programmes/morningreport/audio/2018856792/finanical-services-council-criticises-possible-kiwisaver-change) "The more you tinker with it and the more you tax it the less it will become fit for purpose. "So it's the GST on that amount, so it does for most people sound like very small fractions of a percent, and it is. "We're asking the government to rethink it and re-consult." ["What we're doing here aligns with what already happens in Australia" - Revenue Minister David Parker duration 2:49](/national/programmes/morningreport/audio/2018856822/revenue-minister-defends-kiwisaver-fees-gst-change) ["What we're doing here aligns with what already happens in Australia" - Revenue Minister David Parker](/national/programmes/morningreport/audio/2018856822/revenue-minister-defends-kiwisaver-fees-gst-change) ["It doesn't make any sense" - National leader Christopher Luxon duration 9:40](/national/programmes/morningreport/audio/2018856817/christopher-luxon-wants-proposal-to-charge-gst-on-kiwisaver-fees-canned) ["It doesn't make any sense" - National leader Christopher Luxon](/national/programmes/morningreport/audio/2018856817/christopher-luxon-wants-proposal-to-charge-gst-on-kiwisaver-fees-canned)

Inland Revenue has calculated that the proposed change will add around $225 million a year to the government's tax revenues. The Government did not announce the ...

IRD warned the Government the rule change will simply be passed on to savers, costing people thousands of dollars in lost savings over their lifetimes. "We acknowledge that applying GST equally to all funds would slightly increase overall taxation. If investor fees are increased, this will reduce after-fee returns and therefore the total amounts that are reinvested and saved over time". This amount would increase by about 10 per cent a year as the economy and KiwiSaver funds grew. over that time the market will respond accordingly. Currently the tax treatment of these funds varies. to fleece New Zealanders of their hard-earned cash". "This is about correcting an anomaly that really has allowed some of those very large managed funds to get away with it. "This is such a bad idea; a retirement tax when we're trying to encourage people into KiwiSaver doesn't make any sense," Luxon said. Non-KiwiSaver funds will be hit by $83b. "People are so angry about it. The Government did not announce the changes.

OPINION: A previous Labour Government gave us the most successful savings product in a generation only for this one to take some of it away.

The reality is, that fees on KiwiSaver and managed funds mean that those who save more will pay more tax. This Government has pledged no new taxes, and technically it’s just an extension of an existing one. The FMA estimates over $180 billion in reduced savings by 2070. For an average person with $50,000 saved, the GST would be an extra $75-80 a year in fees. Someone with $300,000 saved at retirement would pay an extra $450+ a year. [Is KiwiSaver punishing the poor?](https://www.stuff.co.nz/business/opinion-analysis/300050095/is-kiwisaver-punishing-the-poor?rm=a)

New Zealand's government is under fire from opposition parties over plans to tax the management fees paid by pension funds because it is expected to result ...

New Zealand's government is under fire from opposition parties over plans to tax the management fees paid by pension funds because it is expected to result ...

An attempt to tidy up the GST charged on different investment products. The Government is planning to impose GST on Kiwisaver fees, which will give it an e.

Associate Finance Minister Megan Woods says the current situation in law when it comes to GST on KiwiSaver fees, is a mess. The Government is planning to i.

- Publish Date - Wed, 31 Aug 2022, 12:28pm - Author

The Government has U-turned on a proposal to tax fees on KiwiSaver funds. The proposal would have forced managed funds and KiwiSaver providers to pay a flat ...

When last in Government National ditched the Kick-Start payment and introduced a tax on employer contributions," Parker said. Currently the tax treatment of these funds varies. to fleece New Zealanders of their hard-earned cash". "During extensive consultation views were mixed on the merits of the technical change. Non-KiwiSaver funds will be hit by $83b. The figures were included in a Regulatory Impact Assessment (RIA) published with the rule change. The large companies profiting from the current set-up were opposed to the change, while smaller providers were more supportive of the change. Parker rejected that the tax was a tax on KiwiSaver - the tax was a tax on KiwiSaver fees, which regulators warned would result in lower KiwiSaver balances, he said. Ultimately, though, we thought we were fixing the system for those fund providers. "It was a proposal to even up GST of fees paid to KiwiSaver providers," Parker said. We've heard very clearly from them, they don't believe that's what it would achieve," Ardern said. The Government has U-turned on a proposal to tax fees on KiwiSaver funds.

Revenue Minister David Parker said Inland Revenue and Treasury advised the change to remove a loophole used by large financial companies, so they would have to ...

And those articles are free. *

The Government has u-turned on a proposal to tax fees on KiwiSaver funds. The proposal would have forced managed funds and KiwiSaver providers to pay a fla.

- Publish Date - Wed, 31 Aug 2022, 2:05pm - Author

After kicking open the door to tax changes - a major vulnerability for the party - Labour has quickly slammed it shut again, RNZ Political Editor Jane ...

Parker declined to name names. "We were expecting support from some of the smaller KiwiSaver providers... By 2070, the law change could have reduced KiwiSaver fund balances by $103 billion. During the 2017 election campaign, Labour leader Jacinda Ardern made a "captain's call" and kicked the Capital Gains Tax to touch when it became apparent it was starting to cost the party dearly. The question facing Labour was whether it would cut its losses on a tax not due to kick in for several years - but causing plenty of pain now - or forge ahead in the belief the electorate shared its commitment to tax law consistency. The principle was to fix a loophole in tax law under which financial services are exempt from the 15 percent goods and services tax (GST).

Revenue Minister David Parker says the reversal came after the policy "caused concern for Kiwis".

And those articles are free. *

KiwiSaver tax proposal dumped after backlash. Welcome to The Spinoff's live updates for August 31, I'm Stewart Sowman-Lund. You can reach me via email on [email protected]. The agenda. The government has abandoned plans to add GST to the fees ...

- The government has abandoned plans to add GST to the fees paid on KiwiSaver nest eggs. - The hosts of the far right online media outlet Counterspin have appeared in the Christchurch District Court. Welcome to The Spinoff’s live updates for August 31, I’m Stewart Sowman-Lund.

Watch Luxon and Ardern in the House. Credits: Newshub. The National Party is euphoric over the Government's stunning backdown on plans to charge GST on ...

The Government has U-turned on a proposal to tax fees on KiwiSaver funds. The proposal would have forced managed funds and KiwiSaver providers to pay a fla.

Currently the tax treatment of these funds varies. When last in Government National ditched the Kick-Start payment and introduced a tax on employer contributions," Parker said. to fleece New Zealanders of their hard-earned cash". "During extensive consultation views were mixed on the merits of the technical change. The large companies profiting from the current set-up were opposed to the change, while smaller providers were more supportive of the change. Ultimately, though, we thought we were fixing the system for those fund providers.

Simplicity's managing director Sam Stubbs says he thought the proposed tax was "a big deal" that had been "buried" at the end of a tax bill.

"They were prepared to sneak through a tax, we caught them out, we stopped this one. We've heard very clearly from them they don't believe that's what it would achieve and so, simple, we won't change it," Ardern said. That would have meant about $27,000 less for the average KiwiSaver when they've retired," Stubbs said. "The other thing is that this really would've opened a can of worms in terms of how financial services are taxed. There's a reason why financial services don't have GST on them. "This was the feeling that this was another tax and another disincentive to save in KiwiSaver and we all need KiwiSaver to work because it's going to both fund our retirements and a lot of the infrastructure demands that we will have in the next 10, 20, 30 years," Stubbs said.

The plan to subject all KiwiSaver providers' fees to a 15 percent GST rate was met with an instant backlash from savers and fund providers while the Opposition ...

Revenue Minister David Parker has pulled back on the addition of G.S.T on KiwiSaver fees. ANALYSIS: Just as it looked like Labour might be getting out of its ...

Not only that but it was a proposal to increase the costs of one of Labour’s legacy projects – the Michael Cullen-created KiwiSaver. For National this is the closest thing to a political free lunch there is. They work for you, not the parties or people in power. Indeed, it appears it slipped through to the keeper without anyone within Labour either quite realising what was being proposed, or not thinking it was a big deal. In the House on Wednesday she kept referring to “evening up the playing field”. Both the Regulatory Impact Statement and common sense say the same thing – at the end it was a tax on retirement savings, paid for by KiwiSaver members through higher fees. The general principle of GST is that it should apply on almost everything. From a political management perspective, someone in Labour should have picked this up. National isn’t in office. The changes sought to tidy that up. Labour promised no new taxes, and there it was, in black and white. It is important to be clear about what was being proposed.