KiwiSaver tax breaks mooted
Cullen, the architect of the retirement savings scheme, will head up the group which will have "wide mandate" to look at New Zealand's whole tax system. It has specifically been tasked with looking at GST and potential measures to slow growth in house prices.
But KiwiSaver providers said the scheme could get some attention, too. Changes to the tax regime could make the scheme significantly more appealing, for example, if deductions were exempt from tax or other concessions were put in place.
In Australia, deductions made before tax are taxed at a rate of 15 per cent. Deductions made from after-tax income are not taxed.
There has previously been criticism that long-term New Zealand savers in managed funds are at a tax disadvantage.
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