24 August 2006

Kiwisaver tax changes will help employer contributions - CTU

"The announcement that employer contributions to Kiwisaver schemes will be exempt from specified superannuation contribution withholding tax shows that everything is being done to get employers to support workplace savings," Peter Conway, CTU Economist said today.

The announcement comes on top of the select committee recommendation that employer contributions will count towards the 4% minimum contribution into a Kiwisaver scheme.

Peter Conway said that mortgage diversion also makes sense as it takes account of the reality facing workers trying to save as well as pay off household mortgages.

"The CTU has supported the introduction of Kiwisaver but maintain that it will be more effective if wages are rising so workers can better afford to save and also if employers are contributing to the scheme," Peter Conway concluded.

ENDS

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