From RNZ · RNZ | Te Reo Irirangi o Aotearoa · · 1m
Act pledges tax removal on kiwisaver earnings
act party promises tax cut on kiwi saver earnings to boost long term savings.
In brief
act party promises tax cut on kiwi saver earnings to boost long term savings. act party pledges to remove tax on kiwi saver earnings to let savers benefit from compounding returns without future taxation. Originally reported by RNZ.
act party policy
act party pledges to remove tax on kiwi saver earnings to let savers benefit from compounding returns without future taxation.
“other parties want to force your money into kiwi saver then tax you”
compound interest benefit
seymour explained compound interest grows kiwi saver balances exponentially over time.
“interest on interest year after year grows your kiwi saver balance exponentially”
savings example
a 20 year old builder earning $60,000 would save $209,486 extra by age 65 under the policy.
government contribution change
act will end kiwi saver government contributions for members with employer contributions and replace with tax relief.
cost estimate
the whole plan would cost about $2.4b over four years including benefits from ending government contributions.
policy release
act's fully costed fiscal plan will be released later in the election campaign.
The bottom line
act party pledges to remove tax on kiwi saver earnings to let savers benefit from compounding returns without future taxation.
