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


Progressive Employer Super Contributions Tax Rates

More progressive tax rate for employer contributions to super savings

Employees earning less than $9,500 a year and belonging to an employment based super scheme may have the employer payments to their funds taxed at just 15 per cent under changes proposed to the taxation bill now before Parliament.

Revenue Minister Michael Cullen said today that he had written to the Finance and Expenditure Committee seeking the amendment after representations from the Green Party.

“Although there are not likely to be many people affected, it seems a sensible and fair measure as it is important that super contributions are taxed at a rate which will not discourage savings.

“Currently all contributions are taxed at a flat 33 per cent, regardless of the employee’s income. That overtaxes people earning under $38,000 a year.

“The Bill addresses this problem by allowing employers to apply a 21 per cent rate on behalf of employees earning under $38,000. That principle will now be extended to those on the lowest, 15 per cent tax bracket.

“Contributions made on behalf of employees earning over $38,000 will remain at 33 per cent,” Dr Cullen said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>


Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>


No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>


Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>


Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>


Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>





InfoPages News Channels