Yovich & Co.KiwiSaver Update - 01 October 2018

Oct 1, 2018 | KiwiSaver

KiwiSaver Market News

Global markets continued to post healthy returns during the second quarter of 2018. Virtually all asset classes posted positive returns during the quarter, with Australian equities and global listed property and infrastructure the place to be. The Australian equity market bounced back strongly in the June quarter, posting a return of 11.3% in New Zealand dollars. The strong returns have been driven by the high demand for technology and resources stocks.

Looking closer to home, New Zealand shares have been rising since late April. Over the June quarter, the S&P/NZX50 Index is up by 7.5% and 17.5% over the last 12 months. Performance has come from across the board with many infrastructure and utility names in the index performing very well.

Pleasingly, all KiwiSaver funds managed to produce positive returns over the year across the multisector categories. Over the last 12 months, the Aggressive category has delivered 13.10% versus 4.73% for the Conservative category.

 KiwiSaver assets on the Morningstar database grew to $48.8 billion at 30 June 2018 from $35.7 billion at 31 Dec 2016. This is a great result as it shows that more people are joining and that the funds are growing.

One Answer KiwiSaver Scheme – Multi-Asset Class*

OneAnswer KiwiSaver Update 31 August 2018 Source: https://customer.anz.co.nz/kiwisaver/Investment/FundInformation/Pages/fundperformance.aspx
*Updated as at 31st August 2018. Performance is after deductions for charges but before tax.


Is your Prescribed Investor Rate (PIR) correct?

Do you remember what PIR you used when you first signed up to a KiwiSaver Scheme? The PIR is the tax rate used for calculating the tax to be paid on income earned on your KiwiSaver fund earnings. If your working situation or level of income has changed, then this could affect what your correct PIR rate should be.

Remember it is up to you to tell your KiwiSaver Scheme provider your correct PIR, and we can make this change for you if you let us know.  

If your PIR is too low, you will need to file a tax return and pay any additional tax to Inland Revenue. Any tax already paid will be available as a tax credit.

If your PIR is too high, too much tax may be paid on your investments. The tax paid is treated as final and you won’t be able to claim a refund from Inland Revenue.

 IRD PIR flow chart A

IRD PIR flow chart B

IRD PIR flow chart C

Note: If for the two previous income years you qualify for two rates, your PIR is the lower rate.
For example, last year your rate is 17.5%, the previous year’s rate is 10.5% so your PIR is 10.5%
Sourced from: https://www.ird.govt.nz/toii/pir/workout/toii-pir-workout-how.html#res

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About the author

Nathanael McDonald

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