Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Budget increases attractiveness of savings

1/1 Auckland, New Zealand • 17 May 2007

Budget increases attractiveness of savings

ING applauds the Budget initiatives which provide a significant boost for both KiwiSaver and saving in general.

Today’s budget announced tax credits of up to $20 per week from the beginning of 01 July coupled with a $40 per annum subsidy of fees. Also announced were compulsory employer contributions to be phased in from July 2008 with a tax credit to reimburse employers for the cost of matching employee contributions.

Marc Lieberman, Chief Executive, ING (NZ) Limited said “These tax credits and fee subsidies coupled with the earlier announced $1,000 kick-start and employer contribution tax exemptions combine to make KiwiSaver a very attractive proposition for savers.”

“If the Government’s objective is to encourage employees to save through KiwiSaver, and for employers to actively support the scheme, they have succeeded. We would expect to see more New Zealanders taking up KiwiSaver as a direct result of the changes announced in this Budget.”

“The overseas experience has shown that, short of compulsion, incentives are the best way to drive widespread changes in savings behaviour. The Government have clearly learnt lessons from these overseas experiences and have also listened to feedback from the industry.”

The Budget also announced a welcome reduction to the corporate tax rate, from 33 to 30%. The reduced rate will also apply to Portfolio Investment Entities (PIEs), further enhancing the attractiveness of investment vehicles such a KiwiSaver, other managed funds and listed property vehicles for 33% and 39% taxpayers.

“Without doubt, the Budget has significantly increased the attractiveness of saving for all New Zealanders.” added Lieberman.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election