The Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill (“Bill”), introduced to Parliament in June 2018, could bring some interesting changes to KiwiSaver in 2019.
The Bill proposes to offer, “more choice for employee contribution rates to making it easier for our older working population to join and stay in KiwiSaver.”
The Bill proposes the following changes to KiwiSaver:
- Allow persons over the age of 65 years old to join KiwiSaver. Employers will not be required to contribute for over-65s, however they can do so voluntarily;
- Reduce the duration of contribution holidays from 5 years to 1 year and change the name from “contributions holiday” to “savings holiday”; and
- Introduce new contribution rates of 6% and 10%. This adds to our current contributions of 3%, 4% and 8%.
The Bill is currently with the Select Committee and a report is expected from the Committee in early January, before the Bill’s second reading in Parliament.
Workplace Law team
If you have any queries in respect of the above, or any other Workplace Law issues, please contact a member of Lane Neave’s Workplace Law team:
Employment: Andrew Shaw, Fiona McMillan, Gwen Drewitt, Maria Green, Hannah Martin, Joseph Harrop, Holly Struckman, Alex Beal, Giuliana Petronelli, Abby Shieh
Immigration: Mark Williams, Rachael Mason, Daniel Kruger, Nicky Robertson, Julia Strickett, Ken Huang, Mary Zhou, Shi Sheng Cai (Shoosh), Sarah Kirkwood, Janeske Schutte, Lingbo Yu
ACC: Andrew Shaw
Health and Safety: Andrew Shaw, Fiona McMillan
News and events
Click here for other Employment Law articles.
