David Cunliffe
Finance Spokesperson

Stuart Nash
Revenue Spokesperson

3 August 2011

KiwiSaver funds won’t incur CGT

KiwiSaver funds will not incur capital gains tax on their share investments under Labour’s policy proposal.

“National’s scaremongering in Parliament yesterday --- like almost everything it says on CGT --- was spurious and without foundation,” Labour’s Finance spokesperson David Cunliffe said today.

“KiwiSaver funds that invest in shares are already taxed as portfolio investment entities (PIEs) at the PIE rate of 28 per cent, or as widely-held superannuation funds taxed at 30 per cent,” David Cunliffe said.

Labour’s Revenue spokesperson Stuart Nash said: “In neither case would the KiwiSaver fund attract additional capital gains tax as tax is essentially already being paid on a trading basis.

“CGT will close a major loophole where no tax is currently paid by individuals on investments not managed by mutual funds or superannuation schemes,” Stuart Nash said.

“But there will no double taxation of traded funds under our CGT plan.”

David Cunliffe said National’s credibility was in tatters on this claim.

“It’s also in tatters on its suggestion that Labour is embarking on an expenditure binge. The fact is that Labour’s plan will pay net Crown debt down to zero slightly before National --- and without having to sell off State-owned assets. Under Labour, we will be back in surplus in the same year as National plans to be.”

ENDS

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