Budget 2011: Key KiwiSaver changes
The $1,000 Kick-Start is unchanged. The Budget changes include:
· From 1 April 2012: The tax-free status of employer contributions will be removed. These will be taxed at an employee's marginal tax rate.
· For the year to 30 June 2012 and beyond: The Member Tax Credit rate will be halved from $1 to 50c for every $1 contributed by members, up to $521 a year - half the current maximum. These payments are made annually after the government financial year, so the first payments at these new levels will occur in the second half of 2012.
· From 1 April 2013: The minimum employee contribution rate will rise from 2 per cent to 3 per cent.
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