KiwiSaver Statistics June 2009
KiwiSaver has recently had a second birthday that celebrated over 1,100,500 members. Of these people 52% were female and only 18% of the total membership were aged 55 plus.
Employee deductions in June 2009 amounted to $62,477,285 and for the financial year ending 30 June were $916,603,051. Total payments by the IRD to providers including kick starts and member tax credits amounted to $2,116,241,037.
Have all of your family had their slice of the cake from KiwiSaver? Whether working or not, so long as you or your family members are under 65 years of age, we can show you how to benefit from KiwSaver. The compounding effect of the additional benefits is hard to beat in the current financial climate.
Contact us if you require more information or would like to join.
Click here to view our disclosure statement
Click here to email Thorners or Call Us on (04) 528 8088
Insurance Disclosure – a real example
Non disclosure on insurance applications is becoming an increasingly serious issue, both for the insurers and the clients who have subsequent claims declined or deferred in their time of need.
This link will take you to a TV interview giving both sides of an actual story and gives a very clear insight into what needs to be disclosed or discussed with your insurance broker.
http://www.3news.co.nz/Video/CampbellLive/tabid/367/Default.aspx
Our website www.thorner.co.nz contains other blogs in the case study category on non disclosure including a list of health issues often forgotten but needing to be mentioned on an application.
Call the Thorners team if you have any concerns over your insurance policies or if you wish to take out new life cover. We also operate an online life quote and application system – check it out today.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Thorners
Winner – Best Trade /Service Business
Upper Hutt Business Excellence Awards 2009
Winner Best Trade/Service Business – Upper Hutt Business Excellence Awards 2009
Denis Thorner of Thorner Financial Services Ltd was proud to accept the award for Best Trade/Service Business at the annual Upper Hutt Business Excellence Awards held on the 22nd July 2009.
From 25 nominations in the category, Thorners were noted for providing Service Excellence to their large client base spread throughout New Zealand.
Denis is also a qualifying lifetime member of MDRT, the worldwide premier financial services organistion that recognises excellence.
Denis and his team welcome your call regarding any insurance questions you may have. Home appointments are available from Wellington through to the Hawkes Bay.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Denis Thorner has MDRT Life Qualifying Membership
The Million Dollar Round Table (MDRT), The Premier Association of Financial Professionals, is an international, independent association of more than 31,000 members, or less than 1%, of the worlds life insurance and financial services professionals in more than 84 nations and territories.
MDRT members demonstrate exceptional professional knowledge, strict ethical conduct and outstanding client service. MDRT membership is recognised internationally as the standard of sales excellence in the life insurance and financial services business.
Denis Thorner of Thorner Financial Services Ltd is proud to be a Life Qualifying member of MDRT.
Call Denis if you require any insurance cover. Denis services clients New Zealand wide and welcomes your call.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Transfering Australian Super to New Zealand – July 2009 update
The New Zealand and Australian labour, financial, and goods and services markets are highly integrated by international standards. Retirement savings portability is part of the Single Economic Market (SEM) work programme, which builds on our existing relationship and aims to reduce barriers that may impede the movement of people, trade and capital across the Tasman.
The introduction of retirement savings portability will support and add to the degree of integration between the two countries by allowing New Zealanders and Australians to consolidate their financial affairs in their country of residence.
When will the portability arrangements take effect?
The Minister of Finance and the Australian Treasurer have signed a Memorandum of Understanding that formally records the intention of both countries to allow for retirement savings portability. To implement the arrangements, legislative changes are required in both countries, which we expect to be in place around mid-2010.
What kind of transfers will be allowed under the portability arrangements?
- Savings that are held in a New Zealand KiwiSaver scheme may be transferred to Australia. This means savings in all other funds (including complying funds) or other retirement funds cannot be transferred.
KiwiSaver fund, including member tax credits and the $1000 kickstart from the government.
– The portability arrangements will be the only way of making a transfer of KiwiSaver funds to Australia. This means individuals will no longer be able to withdraw their savings as cash one year after permanently migrating to Australia. However, as noted above, you will be able to transfer the amount of member tax credits you have accumulated. The current KiwiSaver rules require you to return your member tax credits to the government if you withdraw your savings as cash.
- KiwiSaver funds can only be transferred to Australian complying schemes regulated by the Australian Prudential Regulation Authority (APRA). This means you cannot transfer your savings to an Australian self-managed superannuation fund. For more information on which Australian schemes apply, go to http://www.apra.gov.au/Superannuation/
- Retirement savings transferred from Australia may only be transferred into
KiwiSaver funds in New Zealand. This means Australian savings cannot be transferred into any other private retirement funds (including complying funds).
If I move to Australia, can I leave my savings in KiwiSaver instead of transferring them?
Yes. Transferring your savings to Australia when you emigrate is optional. However any contributions you make to your KiwiSaver account while living offshore will not be eligible for member tax credits.
If I transfer my savings to Australia, when will I be able to access them?
You will be able to access your KiwiSaver funds at the age of entitlement to New Zealand superannuation. Currently this is at 65 years of age. Any earnings on these KiwiSaver funds as well as contributions made while in Australia will be subject to all Australian rules regarding access to funds.
Which country’s rules will apply to savings transferred between the two countries?
In general the rules of the host country regime will apply. However there are certain differences that will be applied to transferred savings in order to protect the integrity of the respective regimes. These differences apply only to the savings that are transferred, and not to any subsequent earnings on these transfers.
The key differences are set out below:
New Zealand KiwiSaver funds transferred to Australia:
May not be accessed until the New Zealand age of retirement (65 years).
May not be transferred into Australian self managed superannuation funds.
May not be transferred to a third country.
Australian funds transferred to New Zealand:
May not be accessed until age 60 and the individual satisfies the Australian definition of retirement at that age.
May not be used to assist with the purchase of a first home.
May not be transferred to a third country.
If I transfer savings from Australia, can I use those funds to put towards buying a first home?
As noted above, funds transferred from Australia will not be able to be used to buy a first home. This is consistent with Australia’s policy regarding superannuation funds. In addition, any savings transferred from Australia will not count towards your eligibility for the deposit subsidy. For more information on the housing-related initiatives of KiwiSaver, go to
http://www.hnzc.co.nz/hnzc/web/rent-buy-or-own/home-loans/kiwi-saver-homeownership-features.htm
How will these different rules be applied to transferred savings?
Any savings transferred between the countries must be separately identified within an individual’s retirement savings account.
Can I transfer my savings to Australia even if I don’t emigrate there?
You can only transfer funds to Australia if you permanently emigrate. Before transferring your funds, your KiwiSaver scheme provider will require proof that you are
residing in Australia.
Can I transfer some savings to Australia and leave some in New Zealand?
No. If you choose to transfer your savings to Australia when you emigrate, you must transfer them all. This avoids the proliferation of small and inactive accounts which are costly to administer.
If I transfer savings from Australia, can I withdraw these for reasons of significant financial hardship or serious illness?
Yes, so long as you meet the relevant conditions of release contained in the Australian Superannuation Industry (Supervision) Regulations 1994.
It is not compulsory for scheme providers to transfer or receive funds to or from Australia. However KiwiSaver members are able to transfer their savings to a KiwiSaver scheme that does offer this facility.
Do I have to transfer my savings if I move to Australia or vice versa?
No, the arrangements are voluntary.
Will New Zealand tax any transfers from New Zealand to Australia or vice versa?
No.
Will Australia tax any transfers?
Australia will not specifically tax the transfer of retirement savings to or from New Zealand. However at the initial point of entry into the Australian superannuation system, transfers of New Zealand savings will be subject to Australia’s rules regarding the taxation of retirement savings contributions greater than $150,000 per annum. This is known as the non-concessional contributions cap. Australian-sourced retirement savings, and any New Zealand-sourced retirement savings re-entering Australia, will be exempted from these rules upon re-entering the Australian superannuation system.
For more information on this cap go to http://www.ato.gov.au/superfunds/content.asp?doc=/content/00106372.htm&page=6&H6
Is there a difference in the rate of tax on earnings between Australia and New Zealand?
Yes, Australia has a flat rate of 15% on earnings. From 1 April 2010 the New Zealand tax rate on superannuation earnings will range from 12.5% to 30%. It is also not traightforward to make a comparison between the two tax regimes because of other factors. For example Australia also taxes capital gains on equities whereas New Zealand does not tax capital gains on Australasian equities.
There are also other advantages to transferring your retirement savings to your country of residence such as being able to consolidate you financial affairs and not pay multiple sets of fees.
Any changes to your Australian Super schemes require specialist advice so talk to us first. We service clients NZ wide so contact us for information today.
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
Sun Super Industry Superannuation Fund Australia
Sentinel Lifetime Loan Interest Rate Change from 1 July 2009
Sentinel have advised that the floating rate for their Lifetime Loans will drop to 6.85% p.a. effective from 1 July 2009.
This is a dramatic drop reflecting current market changes and takes affordability of the lifetime loan to a new level and the lowest it has ever been.
If you are retired, own a home and are suffering financial distress or just need some additional cashflow, there has never been a better time to consider a Sentinel Lifetime Loan.
Thorners offer a NZ wide service so call or email us for more information on Sentinel Lifetime Loans today. All discussions are confidential.
New Zealand wide service – let us know your situation today to allow us the opportunity to provide you with some options
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement
