Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

BUDGET 2001:1st payment made to Super prefunding

24 May 2001

1st payment made to partial prefunding of NZ Super

The Government has used the 2001 Budget to begin making contributions into the planned New Zealand Superannuation Fund.

"The initial contribution is for $600 million, the amount signalled in this year's Budget Policy Statement," Finance Minister Michael Cullen said.

The assumed transfers for the subsequent three years were $1.2 billion, $1.8 billion and $2.5 billion respectively.

This money would sit in the Debt Management Office, earmarked for the New Zealand Superannuation Fund. But the Fund itself, and the governance arrangements for it, would not be formally established until the New Zealand Superannuation Bill, now before the Finance and Expenditure Select Committee, was passed.

"Securing New Zealand Superannuation is vital as currently almost half of all superannuitants rely entirely on NZS as their sole source of income," Dr Cullen said.

"However it is important that New Zealanders also save privately if they want a higher standard of living than the NZS can provide.

"The Government will appoint a small task force of officials and savings industry representatives to report back before the end of this year on options to lift private savings."

This timetable would allow the task force to take into account the work of the Taxation Review Committee.

"We will attempt to get cross-party consensus on both the partial prefunding scheme and on the tax treatment of private superannuation schemes.

"But if we cannot get agreement to pass the necessary legislation in this Parliament, we will campaign actively for our own policies at the next elections and let the voters judge," Dr Cullen said.

ENDS




© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Taxing Capital Gains: Tax Working Group Delivers Final Report

Group Chair Sir Michael Cullen says our system has many strengths but there is a clear weakness caused by our inconsistent treatment of capital gains.

“New Zealanders earning just salary and wages are taxed on their full income but we have several situations where you can earn income from gains on assets and not be taxed at all.

“All members of the Group agree that more income from capital gains should be taxed from the sale of residential rental properties. The majority of us on the Group, by a margin of 8-3, support going further and broadening that approach to include all land and buildings, business assets, intangible property and shares.” More>>

 

89 Cents An Hour: Govt Plans Fix For Minimum Wage For People With Disabilities

IHC is delighted that the Government is looking into replacing the Minimum Wage Exemption (MWE) with a wage supplement to ensure people with disabilities are paid at least the minimum wage. More>>

ALSO:

Auckland Action Against Poverty: Motels Profit From Housing Crisis

A single motel which charges up to $1,500 per week per room has received over $3 million worth of Government funds to provide emergency assistance, despite never having a Code Compliance Certificate – an offence under the Building Act – and receiving a series of longstanding complaints from occupants... More>>

ALSO:

Gordon Campbell: On The Alleged China Relations Crisis

If New Zealand’s relations with China are ‘deteriorating’ then you still need a microscope to detect the signs... More>>

ALSO:

Environment: Government To End Tenure Review

“Tenure review has resulted in parcels of land being added to the conservation estate, but it has also resulted in more intensive farming and subdivision on the 353,000 ha of land which has been freeholded. This contributed to major landscape change and loss of habitat for native plants and animals,” said Eugenie Sage. More>>

ALSO:

Bell Tolls: Big Changes, Grand Mergers Planned For Vocational Training

“At a time when we’re facing critical skill shortages, too many of our polytechnics and institutes of technology are going broke... More>>

ALSO:

Sallies' State Of The Nation: Progress Stalled In Reducing Inequality

The report shows a lack of tangible progress in key areas including record levels of household debt and a growing gap in educational achievement between poorer and more well off communities. More>>

ALSO:

Party Politics In Tax Morale Survey: SSC To Seek Answers From IRD

Minister of State Services Chris Hipkins has today asked the State Services Commissioner Peter Hughes to examine IRD’s reported inappropriate use of a public survey. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels