Employees need to discuss changing their contribution rate with their employer, or alternatively, fill out the required forms if they are self-employed. The default contribution rate is 3% of an individual’s pay, but employees can change to either of the following rates: 3%, 4%, 6%, 8%, or 10%. Although the contribution rate may only be…
The New Zealand government is attempting to make changes to reduce the debt that it has incurred in its efforts to stabilize the economy during COVID. The Labour party announced a new top tax rate (39%) which would apply to those earning over $180,000 – this would bring in 550 million dollars each year. However,…
Individuals may choose to apply to withdraw money from their fund if they are suffering significant financial hardship. To qualify as suffering significant financial hardship, one or more of the following criteria needs to be met as per the official government website: Cannot meet minimum living expenses Cannot pay the mortgage on the home you…
The Government is making changes to NZ Super and Veteran’s Pension with the aim of modernising superannuation in New Zealand. The scheme originally planned to come into effect on 1 July 2020 as an outcome of the 2019 budget, but has been delayed to 9 November 2020 as a result of shifting focus to supporting…
Employees are paid their KiwiSaver contributions through their employers, however self-employed individuals have to do things a little differently. If you are self-employed, you agree to your contribution level with your provider instead of contributing a percentage of your pay. Self-employed individuals who do not receive PAYE income will not be required to make any…
New Zealanders who are currently receiving NZ Super payments, or are looking to apply need to be aware of the obligations that come with the scheme. It is important to be prepared for and prevent any penalties that may come your way in the case that you do not uphold these obligations. What are your…
Inland Revenue has announced that those experiencing financial hardship as a result of COVID-19 may be eligible to withdraw their KiwiSaver funds early. In addition to applying for an early release, you can also apply for a KiwiSaver savings suspension in the event that you want to stop further contributions being made from your wages…
New Zealand’s national super fund, KiwiSaver, has most recently announced the move of their default super accounts from “conservative” to “balanced”. KiwiSaver default super funds have long been “conservative” due to only 10-35% of funds in accounts being invested into growth assets. However, with the change coming into effect in July 2021, the move to…
NZ Super has recently been accused to be unfair in its operations, as soon-to-be retirees doubled as high income earners are receiving large amounts of super payments despite not having the need for them. Recent statistics released to RNZ’s checkpoint show that over 30 000 of NZ Super recipients are earning double the median wage.…
Better Later Life – He Oranga Kaumātua 2019 to 2034 is the Government’s plan to provide older New Zealanders with a better quality of living. The strategy was launched on 1 November 2019. Designed to ensure everyone gets the chance to live well as they get older and create opportunities for everyone to participate, contribute…