Parliament

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

 

Major step forward on KiwiSaver from 1 April

Hon Dr Michael Cullen
Minister of Finance
Hon Peter Dunne
Minister of Revenue

27 March 2008 Media Statement

Major step forward on KiwiSaver from 1 April

With 500,000 New Zealanders on board, KiwiSaver takes a major step forward next week with the introduction of employer contributions and tax credits, Finance Minister Michael Cullen and Revenue Minister Peter Dunne said today.

Employers with staff enrolled in KiwiSaver will be required to contribute one per cent of their employees’ salary to their KiwiSaver accounts from 1 April. This will rise by an additional one per cent until 2011 when four per cent contributions will be required.

These contributions will be supported by a government tax credit for employers of up to $20 per week from 1 April.

“Employer contributions will be a vital part of KiwiSaver’s success,” Dr Cullen said. “As thousands of employers already know, contributing to the retirement savings of staff helps strengthen the employee/employer relationship.

“The tax credits to support these contributions will help make the moves affordable for business. Our goal is to build a renewed culture of savings in New Zealand with significant benefits for the entire economy.”

Peter Dunne said employers around the country had been working hard on the introduction of their contributions.

“We know that businesses throughout New Zealand have put a lot of effort into making next week’s changes happen,” Mr Dunne said. “By and large feedback from employers has been positive, and we thank them for their hard work.

“If we build a large pool of domestic capital through KiwiSaver, there will be more money available for investment in Kiwi businesses, and we will all win out of this scheme.

“Inland Revenue will work in the months ahead to address any teething issues that remain with the scheme. It is true that the surprising number of enrollees in KiwiSaver has put some pressure on resources, but employers have been very patient as issues have been worked through.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice.

Evidently, the National government is similarly desperate for anything that might discredit or derail the Ardern juggernaut, even if that means throwing Internal Affairs Minister Peter Dunne under a bus More>>

 

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

Mental Health Foundation: 'Positive First Steps'

“The heavy reliance on pilots and targeted approaches in the package announced today makes it plain that additional funding will be needed so that activities that work can be made available throughout New Zealand,” says Mr Robinson. More>>

ALSO:

'Gift' To NZ: Synod Considers Third Christchurch Cathedral Option

Members of the Anglican Diocese of Christchurch will consider three, not two, options regarding the future of the ChristChurch Cathedral... The new option is for the Synod to gift the Cathedral building to the Government for the people of New Zealand. More>>

ALSO:

PM's Presser: Labour's Water Policy 'Reckless', Says English

The Labour Party has "bumbled into" its policy to charge for water in a "reckless" way that would put a Labour-led government on a collision course with both Maori and other water users, Prime Minister Bill English said at his weekly post-Cabinet press conference.. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election