Researchers: Re-think PIE regime

The Tax Working Group is developing a final report on its recommendations for the future of tax policy.

It has recommended removing tax on employer KiwiSaver contributions for people earning up to $48,000 and a five percentage point reduction in the lower PIE rates for savings in KiwiSaver accounts.

Pension researcher and founder of SuperLife Michael Chamberlain has since analysed recent data on all KiwiSaver schemes published by the Financial Markets Authority. 

He said returns for the 12 months to June 30 illustrated the TWG’s recommendation on investment returns would have made little difference for the lowest-paid savers.