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


Greens win super change

Greens win super change

The Green Party has persuaded the Government to introduce a lower superannuation tax rate to help low income workers to save for their retirement.

The Finance Minister, Michael Cullen has announced today that he has asked the Finance and Expenditure Committee to amend the Tax Bill to incorporate a new 15 per cent tax rate on employer superannuation contributions for employees earning less than $9,500 a year.

"We are pleased to have persuaded the Government to extend its progressive superannuation tax legislation so that low income, part time and casual workers are no longer penalised for saving for their retirement," said Green MP Rod Donald.

"I hope the new low rate will encourage more employers to offer subsidised superannuation to all staff, not just the well paid," he said.

Until the bill was introduced, employer superannuation contributions were taxed at a flat rate of 33 per cent. This penalised employers who provide subsidised superannuation to staff earning less than $38,000 while providing a 6 per cent tax inventive to employers subsidising staff earning more than $60,000.

"It's good that the Government has taken two steps in the right direction by firstly introducing the 21 per cent tax rate in the bill and now agreeing to add a 15 per cent rate, but it should go further.

"Ever since the Government introduced the 39 per cent income tax rate we have urged them to extend the six per cent tax incentive across the board. It's simply not fair that the already well off benefit from a generous tax incentive while the rest of the work force misses out.

"Giving low and middle income New Zealanders a real incentive to save for their own retirement would only cost $77 million per year, a fraction of the annual cost of the New Zealand Superannuation Fund," Mr Donald said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news