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


Copeland: Superannuation Savings

Tue, 19 Oct 2004

Following is a brief submission from United Future's finance spokesman, Gordon Copeland, concerning superannuation savings.

Submission To The Savings Product Working Group’s Report “A Future For Work Based Savings In New Zealand”

Gordon Copeland MP

I wish to make a brief submission concerning a few key design features which I believe should be incorporated into work based savings in New Zealand.

1. Membership of schemes should always be voluntary with opt-out provisions for employees in a firm who do not wish to participate.

2. The over taxation of superannuation fund earnings needs to be addressed. My suggestion is that earnings be taxed at the marginal tax rate of the saver consistent with the procedures and the rates introduced this year for employer specified superannuation contributions. It seems to me that this provides a ready framework for application to work based saving schemes and other superannuation fund earnings (including the 33 cent cap). This will remove part of the present tax disincentive.

3. For similar reasons I favour an exemption from capital gains tax. I understand that this is also under review by Craig Stobo on behalf of the government. An important principle of tax neutrality is involved here. In most circumstances capital gains made through investment in rental housing, together with all forms of business investment, are tax free in New Zealand. Therefore it makes no sense, and in fact positively discourages, savings through managed investment and superannuation funds if they are treated differently in relation to capital gains tax.

4. As the SPWG has pointed out, access to funds saved is an important design feature for work based schemes. The goal should always be long term savings for retirement. However I believe it would be very worthwhile to allow employees to withdraw all of their savings on a one time only basis to acquire a house because home ownership itself is an important element of financial security in retirement.

We should therefore encourage home ownership and signal that in the design of work based schemes because it is entirely consistent with the purpose for which they have been established. Put another way, home ownership is itself a form of long term savings and is also highly desirable from a social policy point of view.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


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>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news