Merit In Discussion on KiwiSaver Tax Deductions
CTU MEDIA RELEASE
28 November 2006
Merit In Discussion on Tax Deductibility of KiwiSaver Contributions says CTU
CTU Economist Peter Conway today said that there is merit in discussing tax deductibility of compulsory employer contributions to KiwiSaver.
Revenue Minister Peter Dunne is today reported as saying that any future tax cuts could be used to offset compulsory contributions to KiwiSaver.
"Both the CTU and the New Zealand Institute have supported tax deductibility for (compulsory) employer contributions of up to 4% of gross wages to workplace savings," Peter Conway said.
"We proposed this in our submission to the Business Tax Review as an alternative to tax credits. It would ensure that any cuts in company tax were added to savings, not consumption. It would boost the availability of funds for investment, and would reduce inflationary pressures."
"We think there is merit in discussing and costing this policy option, and we would be interested in finding out more about this from the Minister," Peter Conway said.