Changes to KiwiSaver Welcomed

24 August 2006

Wellington Regional Chamber of Commerce Welcomes Changes to KiwiSaver

The changes to KiwiSaver announced today have been welcomed by the Wellington Regional Chamber of Commerce.

“Today’s announcements reduce the compliance costs on employers which have been a major drawback of the scheme to-date”, said Chamber CEO, Charles Finny.

“The decision to exempt employer contributions to Kiwisaver schemes from specified superannuation contribution withholding tax will please most employers.

“We are also supportive of the mortgage diversion feature which recognises that debt repayment can often be the most effective way of saving.

“The Chamber is concerned at New Zealanders’ relatively low savings rate. We hope KiwiSaver can help improve this performance.

“It is encouraging to see that Government has listened to feedback from the business community and has made consequent changes to the design of the scheme,” Mr Finny concluded.

ENDS

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