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


CTU calls on National to abandon KiwiSaver Cuts


23 October 2008

CTU calls on National to abandon KiwiSaver Cuts

Council of Trade Unions President Helen Kelly is calling on the National Party to abandon their KiwiSaver cuts.

An Inland Revenue Evaluation of the first year of KiwiSaver shows that 86 percent of KiwiSaver members are in paid employment, 80 percent of KiwiSaver members earn less than $50,000 a year and the proportion of wage and salary earners in KiwiSaver and earning between $20,000 and $40,000 a year is more than the proportion of the eligible population in that income band.

“This shows that KiwiSaver is of significant benefit to low income workers,” Helen Kelly said.

“National’s proposals would have a huge impact on KiwiSaver. A 2+2 formula with reduced member tax credits means that a KiwiSaver aged 30 years old and presently earning $40,000 will lose by age 65 accumulated savings of $116,438.”

“Low income workers will be worse off under National. Right now, a worker on the minimum wage has a member tax credit worth 4%, and their employer contributions are totally covered by employer tax credits. This makes it easier to get employer co-operation and harder for employers to argue workers’ contributions should come out of a lower wage increase, which is exactly what is at risk under National’s proposals.”

The Evaluation released today does include a panel survey that shows the main reason for those who did not join was the 4 percent minimum contribution.

“The CTU has always supported the 2+2 option. But we did not call for the 4% to be removed. We wanted employer tax credits to continue. We did not want member tax credits reduced.”

“National said they had an economic plan involving tax cuts and infrastructure. But their tax cuts come at the expense of KiwiSaver and their infrastructure spending also relies on directing the NZ Super Fund. This is hardly an innovative plan.”


Note: The major changes to KiwiSaver proposed by the National Party are to remove the employer tax credit, cap the minimum contributions at 2% for employers and workers, reduce the member tax credits for those earning under $52,000, remove the recent law change preventing employers from discriminating against KiwiSavers in terms of wage increases, and reduce the tax exempt part of employer contributions to 2%.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>




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. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. 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>>


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>>


(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>>






Featured InfoPages

Opening the Election