Yovich & Co. KiwiSaver Market Update - 13 June 2019

Jun 13, 2019 | Commentary KiwiSaver

Tax issues related to KiwiSaver have been in the spotlight lately, regarding KiwiSaver members being over/undercharged investment tax through their prescribed investor rate (PIR). PIR is a tax that is applied to all investment savings, including KiwiSaver. Unlike income tax, which is refundable, PIR tax is non-refundable. Overpayment is due to an incorrect PIR being submitted when signing up to a KiwiSaver provider or a change in your personal income. This means members with a higher PIR than it should be are being taxed too high and not only paying too much but also losing out on investment returns that could be gained from the overpayment amount.

The IRD has implemented a new computer system that allows the IRD to now bill KiwiSaver members if they have provided a PIR that is lower than it should be. KiwiSaver members in this situation will receive a nasty surprise as they have to fund this payment from their income, not through their KiwiSaver balance.

A benefit of having your KiwiSaver through Yovich & Co is that you get to talk to an Adviser free of charge. We know your current PIR, so if you have any uncertainty regarding your KiwiSaver PIR, or any other issues, please contact me via the details below.

 

Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. No part of this publication may be reproduced without prior written permission from our company. Disclosure statements relating to the financial advisers associated with this newsletter are available on request and free of charge.

View all news

Download a PDF copy


About the author



Nathanael McDonald



Related Tags



KiwiSaver Tax PIR IRD



Comments


Leave a Comment