Yes I do, but how the system works is not relevant to this discussion imo, that the cost of GST on fees would be borne by the saver, not the provider. How it's collected and disbursed is not the point.
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They could introduce maximum fee regulations, but then wouldn’t GST and any other government imposts would still need to be charged extra to that fee? However if the fee is unrealistic as with rest homes and hospitals, with the government imposed maximum contribution rates, many providers will quit if they cannot cross-subsidise from other revenue streams.Some may decide providing loss making KiwiSaver services would lead to other more profitable business.
Edit: Oops This was meant as a reply to a Panda post…
Ummm...perhaps from their obscene profits.
Last year the 4 Australian banks hoovered up $5.5 Billion nett profit after tax (NPAT) from NZ. Do you realise how much that is per day!
It's nearing the total profit of our entire NZX50 which made about $7 billion NPAT.
Just 4 Australian owned banks earn about 80% as much as our top 50 largest Public companies combined.
Australian banks are among the most profitable in the world with among the highest margins against us Kiwis.
ANZ (John Key chairman) alone, made nearly $2 Billion in profit.
The Kiwi Saver industry generates over $650 million in fees for very little work, with a large chunk of that going to Australian banks.
And while NZ providers pay GST on fees, there's an explosion of outrage when there's a move to close the loophole Australian providers enjoy to avoid paying us tax.
Ask yourself, if the situation was reversed, would the Australian govt opposition get so frothy about extending NZ such a special privilege putting their own domestic providers at a disadvantage?
What chance does the govt have against such a powerful lobby group & an influential but generally uninformed media.
Perhaps Kiwi residents find it more profitable after tax to invest in real estate using mortgages supplied by the Aussie owned banks, rather than investing in banks themselves. So it is profitable for Australian bank investors as well as Kiwi real estate investors, in the current fiscal and investment environment in NZ?
Fair call, I know.
Was just making a point about the amount of money they plunder from the NZ economy which is staggering, & they could easily absorb that by reducing their charges & fees.
As am sure you're aware, there's been calls for regulation, look at ANZ how many other companies increased their profits by around 40% during Covid.