KiwiSavers’ tax bill equal to property investors’, tax expert says

KiwiSaver members copped a $166 million tax bill on their $40 billion in investments over the past year – and it’s being held up as an example of New Zealand’s unfair tax system.

Data from the Financial Markets Authority shows default members paid $25.4m and those who had made an active fund choice $140.8m, in the year to March 31.

The total tax bill is about equal to what is paid by all the property investors in the country, who have about half-a-million rental properties between them.

Peter Neilson, former chief executive of the Financial Services Council (FSC), said people who invested in long-term savings vehicles were harshly taxed under the New Zealand system.

READ MORE:
KiwiSavers ‘harshly’ taxed compared to property investors, book claims
We’re realising a capital gains tax is the way forward, experts say

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As the amount of money in KiwiSaver grows, how it is taxed will become a more pressing issue.

READ MORE VIA STUFF

 

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