Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZPIF rejects the Financial Services Council’s claim

Media Statement for immediate release

7 February 2013

NZPIF rejects the Financial Services Council’s claim

The Financial Services Council, a group representing Insurers and Fund Managers, is recommending government spend even more of tax payer funds to increase their members incomes. Their recommendations are:

1.   Increase the minimum KiwiSaver contribution rate to 7 per cent, thereby compulsorily increasing the amount of funds they earn fees from.

2.   Change Conservative Default Funds to "lifestages" funds with more "growth" assets, which they earn higher fees from.

3.   Drop PIE fund tax rates from 10.5% to 4.3%, 17.5% to 8% and 28% to 15%.

The Council’s reason for halving their tax rates (already below personal tax rates) is to put KiwiSaver funds on a level playing field with rental property investments.

The NZ Property Investors’ Federation would like to point out that:
• Traders in property are taxed on their capital profits, while Fund Managers are not.
• Higher income earners are taxed 33% on their rental income, rather than the 28% rate for Fund Managers.
• Unlike the Fund Management Industry, property investment does not receive tax payer funds to enhance the returns it provides.
• Unlike New Zealanders using Fund Managers, property investors’ do not have to pay around 1% of their investment to the manager regardless of whether a profit is made or not.
• Property investors do not receive Government money to help pay for property management, yet the NZ Government give up to $500 to each Kiwisaver account every year as a contribution towards their funds management fees.

President of the NZ Property Investors’ Federation, Andrew King, say’s “it’s clear that rental property doesn’t have a tax advantage over Managed Funds, so I guess the Financial Services Council must want a lower tax rate because they simply can’t compete with property investment returns. Perhaps they should lower their fees or just get a better return for their clients rather than attacking an industry that is simply outperforming them.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news