New Zealand

Details

  • Service: Tax
  • Type: Business and industry issue
  • Date: 20/10/2011

Contact us

Rebecca Armour
Director - Tax
Phone: +64 9 367 5926
rarmour@kpmg.co.nz

 

John Cantin
Partner - Tax
Phone: +64 4 816 4518

jfcantin@kpmg.co.nz

Tax

Our tax advisory team has the skills and commitment to help you to be competitive and compliant in all areas of business tax.

Taxmail - KiwiSaver automatic enrolment if Government re-elected 

Issue 2, October 2011

 

The National Party has announced that it would introduce an automatic enrolment of employees, currently not in KiwiSaver, if re-elected in November. 

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The proposal, which would occur in 2014-15 subject to the Government’s budget balance returning to surplus, would mean that all employees would be in KiwiSaver (with those not wishing to join having to opt out).  The fiscal cost is expected to be around $550 million.


The proposal, which signals the (unofficial) start of the 2011 election campaign. 

 

It is noteworthy that the proposed auto-enrolment depends on Government being able to balance its books first (while appearing a formality in the Budget 2011 forecasts, recent events suggest this outlook might now be optimistic). 

 

The proposal will impose costs on employers as they are required to match employers’ contributions.  (This will be on top of the additional 1% employer contribution from 2013-14).

 

If you have any questions on the above, please speak to your usual KPMG advisor or contact:
 

Rebecca Armour
Director - Tax
KPMG
Phone: +64 9 367 5926

rarmour@kpmg.co.nz

John Cantin
Partner - Tax
KPMG
Phone: +64 4 816 4518

jfcantin@kpmg.co.nz

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

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