A simple system is not necessarily a fair system. Lack of a income tax-free thresh-hold and GST on basics has led to a web of tax rebates, supplements and benefits instead.
it would not be difficult to exempt the KiwiSaver pension scheme fees.
Printable View
The police were on to it. https://www.crikey.com.au/2022/06/20...ewest-senator/
westerly
Backlash was too much for them...
https://www.stuff.co.nz/national/pol...r-gst-tax-grab
Totally gutless, pandering to media hype and popular opinion. No way I could vote for a govt that shifts policy with every outburst from a sensationalist media, it is sickening. Managed funds industry probably the big winner, although Kiwisaver was a massive gift bestowed upon them by Michael Cullen.
That said I agree with saving for your retirement I just wonder how much the managed funds industry makes out of it (1% of everything invested every year must add up over time, especially as Kiwisaver balances grow). maybe it is not much but I suspect they are doing OK.
Most of their performance is taken care of by Adrian at the RBNZ. More money anyone?? Lower rates perhaps?? Although I guess that hammers the term deposits and bond portion of the portfolios.
Some here sound more outraged over the withdrawal of the GST charge on the fees charged by foreign owned Kiwisaver Fund providers, to put them on the same footing as NZ managed Kiwisaver Fund providers, than the deliberate cynical misrepresentation of this as a tax on peoples retirement savings by Willis & Luxon.
Luxon & Willis achieved exactly what they wanted which was for people to mistakenly think their retirement savings were going to be taxed, rather than GST applied to the 1.5% fees of foreign owned Fund Providers.
We are really starting to venture a step closer to Trump/Republican territory when this group of National MP's so vigorously misrepresent things for political gain.
Talkback was flooded with stressed people thinking a new GST of 15% was going to be applied to their savings!
If they genuinely felt it justified, Luxon & Willis could easily have argued the case for the exemption to remain, but instead chose to misrepresent it to voters.
Have we lost so much trust in National that deceptions hardly register anymore, anything goes ?
Well said! I've spent the best part of the last hour posting on various Facebook pages, trying to explain this to numerous people, who are panicking, upset, and threatening to pull out of or stop contributing to their KiwiSaver. I get that most of these people have not taken the time to fully understand how KiwiSaver works, but regardless of that, National exploited the situation intentionally. As you said "vigorously misrepresenting things for political gain."
Anything does not go for this voter. Up until now I have maintained an open mind in terms of who might be worthy of my vote. National just lost their spot on my list for this dirty play. Would take an absolute miracle for me to consider them now. As I said in another post, at the rate things are going, Labour will get back in by default because the other parties are slowly digging themselves an election grave.
Interesting - if they listen to the people it is backpedaling, if they don't listen it is being arrogant.
Governments never win.
Aaron - you won't be voting for National either then - Luxon changes with the wind.
Not all funds are 1% but they make plenty (though they plead poverty at every turn).
I still suspect that much of the noise was because people didn't understand that the GST was only on the fees rather than what they put in (that's certainly what I heard people say on talkback for the short time I listened).
You often have an issue with your history.
National harp on that GST would steal people's retirement money but are happy to tax the employer contribution.
And they removed the $1k kickstart.
They have done more to affect peoples future balances than a bit of GST.