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There have been changes to KiwiSaver that could have a big impact on how much money employers contribute to the scheme, which may have passed unnoticed by many members.
The changes, which kicked in this month, affect the way KiwiSaver is taxed, with the government introducing the Employer Superannuation Contribution Tax (ESCT).
ESCT is the tax deducted from cash contributions an employer makes to an employee’s benefit fund, i.e. KiwiSaver schemes, complying funds and other superannuation funds.
From 1st April 2012, the 2% exemption from ESCT for employer contributions to KiwiSaver is to be removed. Employers will calculate ESCT at the employee’s marginal ESCT rate, as below.
| ESCT rate threshold amount | Tax Rate |
| $0 – 16,800 | 10.5% |
| $16,801 – $57,600 | 17.5% |
| $57,601 – $84,000 | 30% |
| $84,001 and above | 33% |
Member Tax Credits
As well as taxing employer contributions to the scheme for the first time, the government has also halved the maximum member tax credit per year from $1040 ($20 per week) to $520 ($10 per week).
Further Changes in 2013
From 1 April 2013, there will be a change in the employee and employer contribution rates:
- The minimum employee contribution rate will rise from 2% to 3% for all members.
- Compulsory employer contributions will rise from 2% to 3%.
You can also read about the changes to KiwiSaver online at www.ird.govt.nz/changes
Please don’t hesitate to contact us if you have any questions regarding your KiwiSaver account, or you are undecided as to what to do, or you simply want to join.
The first quarter of 2012 represented the strongest start for the U.S. stock market since 1998; with Japan turning in its best first quarter gains in 24 years. This was largely driven by a reduction of fears about an extremely negative outcome in Europe, as well as stronger economic data in the U.S.
Source: Dan Richards, Client Insights.ca 04-04-12
- Hair: Used as a final rinse, it reduces dandruff and calms an itchy scalp.
- Odours: Vinegar removes the smell of smoke or mould from clothes.
- Cough: Soothe one with a warm 50.50 blend of honey and cider vinegar.
- Diabetes: Studies show taking 2 tablespoons daily lowers blood glucose by 6%.
- Heart: People who eat vinegar 5-6 times a week have less heart disease.
- Digestion: apple cider vinegar aids in the digestion of protein and can restore your natural pH balance.
Did you know that vinegar has been used throughout history for everything from skin tonics to household cleaners? – Hippocrates, the ancient Greek physician and “Father of Modern Medicine” believed in the healing properties of vinegar, as did the ancient Babylonians before him and the Samurai warriors in Japan later on.
Important:
Please consult with your doctor or health care provider before taking any home remedies or supplements. Only your doctor or health care provider can provide you with advice on what is safe and effective for your unique needs.
If you, or someone you know, would like to find out more please email or call us.