Government Approves KiwiSaver Changes

Changes approved by the Government today are attributed to making the KiwiSaver scheme affordable for tax payers, members and employers.

There have been no changes to these Kiwisaver provisions…

  • The $1,000 kick start payment will not change
  • The $20 a week member tax credit will not change
  • The first home withdrawal, deposit subsidy and mortgage diversion provisions will not change.

Changes to KiwiSaver however are…

  • The employer tax credit is to be discontinued from 1April 2009
  • Compulsory employer contributions are to be capped at 2% effective from 1 April 2009
  • The member fee subsidy will be discontinued from 1 April 2009
  • From 1 April 2009 the minimum member contribution rate will reduce to 2% and all new employees will have a 2% default rate.  Existing members will be able to reduce to 2% but this is not recommended.

Thorners is still of the belief that only those that do not understand Kiwisaver are those that are not members.

Contact us to obtain more information and a copy of our disclosure statement.

Click here to email Thorners or Call Us on (04) 528 8088