Kiwi Saver Comment01
(posted 25/08/2006)
Tax changes to KiwiSaver alarming say
accountants
Finance Minister Michael Cullen is being
accused of setting an alarming precedent by giving a special
concession to the KiwiSaver scheme. Voluntary employer
contributions to the scheme will be exempt from superannuation
withholding tax, although the total exempted amount will be
capped.
The Institute of Chartered Accountants claims Dr Cullen is playing
favourites with his pet scheme. Tax Director Craig Macalister
believes the Government should either give tax breaks to all
savings schemes, or none. He predicts the tax exemption will
inevitably create pressure for savers to pull out of their existing
schemes to get the tax benefit. He says they may do that without
looking at other factors, such as the five year lock-in rule that
some other schemes do not have.
Other changes to the KiwiSaver scheme include the provision for
people to divert half their personal contribution towards mortgage
payments.
Source: newstalkzb
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