FSC Responds To Government Decision To Not Proceed With GST On KiwiSaver Fees

The Financial Services Council (FSC) welcomes the Government’s decision today to remove the GST proposal for KiwiSaver fees from the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill.

This is the right decision by the Government and one that will benefit the retirement savings of New Zealanders over the long term.

At the heart of the issue are good retirement outcomes for all New Zealanders, and as an organisation with a vision to grow the financial confidence and wellbeing of New Zealanders, we believe that a GST tax on KiwiSaver fees was not conducive to this goal.

The FSC wants to encourage and support good policy that builds confidence and trust in the KiwiSaver system. After 15 years of KiwiSaver we need to ensure that the system is meeting the needs of all New Zealanders.

We would like to acknowledge the Government for their flexibility and willingness to engage on this issue, and we look forward to continuing collaborative discussions in the future so that we can craft a world-leading retirement savings system.

Key KiwiSaver facts

• There are 2.92 million iwis who invest in KiwiSaver.
• The total pool of assets in KiwiSaver is $84 bn.
• Average balances in KiwiSaver – approx $27,000.
• Total contributions for 12 months to June 2022 $5.86bn.

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