Changes to KiwiSaver Expected for 2019

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, Kathryn McKinney, Siobhan Rastrick, Hannah Martin; Holly Struckman; Anna Needham; Alex Beal
Immigration: Mark Williams, Rachael Mason, Nicky Robertson, Hetish Lochan, Daniel Kruger, Julia Strickett, Rita Worner, Lavinia Shanks, Winnie Chen, Caroline Edwards, Ken Huang, Sally Stone, Mary Zhou, Sarah Kirkwwood, Lingbo Yu
ACC: Andrew Shaw
Health and Safety: Andrew ShawFiona McMillan

Contact

Andrew Shaw
Partner, Lane Neave

t +64 3 353 8014
m +64 29 244 9001
e andrew.shaw@laneneave.co.nz

Fiona McMillan
Partner, Lane Neave

t +64 9 300 6264
m +64 27 351 2000
e fiona.mcmillan@laneneave.co.nz

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