kiwisaver tagged posts
June 7, 2016 New Zealand Finance
A lack of financial knowledge among Kiwisaver customers could be leading to a lack of competition on the market, and, ultimately higher fees and lower returns.
New analysis conducted by researchers at the New Zealand Treasury indicate that Kiwisaver providers do not appear to be competing heavily on their fees or returns.
The researchers concluded that the market for Kiwisaver providers is relatively inelastic, and large established providers have little, if any, incentive to drop their fees to attract new customers.
There is also very little competition for returns among Kiwisaver funds, as these are often dominated by large and established balanced funds, which see little variance in investment targets between providers.
It was proposed that the lack of competition can be partially a...Read More
July 31, 2014 New Zealand Taxation
New Zealanders could retire with as much as NZD 100 000 more in their pocket, if newly suggested tax changes are made.
On June 30th the Taxpayers’ Union, the Financial Services Council, Age Concern and Consumer New Zealand launched a collaborative campaign calling on the government to reduce the tax burdens paid by New Zealanders on their long-term savings.
The campaign revolves around a call to reduce the taxes applicable on interest income from term-deposits, and from KiwiSaver funds.
According to a statement by the Taxpayers’ Union, term deposits should only be taxed on the interest rate above inflation, as growth in line with inflation should not be considered as an economic income.
The campaign also called for the “…effective tax rate paid on KiwiSaver funds to be the same as the...Read More
April 23, 2014 New Zealand Taxation
New Zealanders support the idea of dropping tax credits on Kiwisaver, in favor of reducing the overall tax burden on retirement savings.
On April 22nd the Financial Services Council released a new statement with the result of a new survey of New Zealanders on their opinions towards taxation of KiwiSaver, showing that a large number of people support the removal of the member tax credit in order to reduce tax rates applicable to retirement savings.
According to the Financial Service Council, if KiwiSaver became mandatory for all New Zealanders, the NZD 521 annual tax credit could be abolished entirely, and the savings were used to directly reduce the tax rates applied to KiwiSaver earnings, then an average New Zealander could cut their Kiwisaver contributions by as much as NZD 164 000 over ...Read More
Tax changes are needed in order to encourage more investments and savings in New Zealand.
Last week at a speech given during the Trans-Tasman Business Circle in Auckland the chief executive of BNZ Bank Andrew Thorburn said that the taxation of property needs to be changed to further promote investment into businesses.
He said that there are insufficient options for individuals looking to invest into assets other than property.
Listing off possible alternatives, Andrew Thorburn suggested that further development is needed into encouraging people to invest in publicly listed companies, venture capital and capital markets.
Describing the current investment market in New Zealand, he said that “…the tax system currently favours investment in residential property, as opposed to bank deposits an...Read More