Tuesday, 11 March 2008

KiwiSaver a great success, says Minister of Revenue

"Nearly 500,000 New Zealanders have joined KiwiSaver, which is a great result," Revenue Minister Peter Dunne said today.

"I agree that the dramatic growth in KiwiSaver membership has placed some pressure on Inland Revenue, but I am very pleased that these initial and very understandable problems have been overcome," he said in response to a statement today from the Employers and Manufacturers Association (Northern).

"For example, delays in processing contributions have been largely removed.

"However, I am concerned that some longstanding opponents of this internationally admired initiative continue to take pot shots at it in an unjustifiable way. Contrary to what is claimed in the EMA's press release, it is not true that employers need to rework the automatic enrolments that have already been made.

"I am aware of the employer tax credit calculation issue and it will be fixed legislatively very soon. No employer will have to forgo any tax credit entitlement.

"Similarly, the double-up in legislative application dates will be fixed shortly by remedial legislation.

"The EMA continue to insist that the government should intervene in individual employment negotiations - that would be a step back to the 1980s that surely no-one could realistically want.

"KiwiSaver is a great success and is meeting the retirement aspirations of hundred of thousands of New Zealanders. I am very proud of the role that Inland Revenue is playing in making KS a reality - and disappointed at the negative attitudes of a small minority," Mr Dunne said

ENDS

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