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Changes to KiwiSaver are needed for the self-employed says New Zealand's leading accounting experts Tutbury & Associates Limited.

Friday 1 November 2019, 11:26AM
By Media PA
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Increasing the Government contribution to KiwiSaver members’ funds could help encourage more self-employed workers to contribute to the scheme, says New Zealand’s premier accounting professionals Tutbury & Associates Limited.

Statistics show that one in 20 employed New Zealanders are currently a contractor. But research from the Retirement Commission shows that only 40 per cent of self-employed/contractors/ business owners contribute to KiwiSaver, compared to 73 per cent of workers who are employed full time.

If you're self-employed it is not compulsory to contribute a proportion of your pay. Instead, you agree your contribution level with your provider.

In its current state, KiwiSaver members get 50c for every dollar they put in up to a maximum of $521 from the Government for every year they are a member of KiwiSaver. “This can be an issue for some self-employed people, who do not have the enticement of an employer contribution to help them to save,” says Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited. 

Retirement Commissioner has suggested that by increasing the KiwiSaver member tax credit to up to $2000 a year can get more self-employed people to contribute to the scheme.

Peter Cordtz, Interim Retirement Commissioner, also recommended that government contributions should also be increased from 50c for every dollar up to $521, to $2 for every dollar up to $1000. A $1000 of their own money and $2000 from the Government, would give members an extra $3000 in their accounts each year.

"This could encourage a wider range of people, such as the self-employed, to save more towards their retirement," advises Kelly.

Ideal for the self-employed, at Tutbury & Associates “we are passionate about your finance and offer a range of services to help you with all of your financial planning needs, including KiwiSaver,” adds Kelly.

About Tutbury & Associates Limited:

Though they are centrally located in Tauranga, Tutbury & Associates Limited are cloud-based. Ideal for trades people, or anyone who wants to grow their business, Tutbury & Associates Limited offers expert services in compilation, financial planning, taxation, business accounting, family trusts and Xero bundles for their clients across New Zealand.

 

Contact Tutbury & Associates Limited:

Phone: 07 576 2194

Email: admin@tutburyassociates.co.nz

Address:  23 Myres Street Tauranga

Website: http://tutburyassociates.co.nz

Facebook: https://www.facebook.com/tutburyassociates/

Instagram: https://www.instagram.com/tutburyassociatesltd/

Youtube: https://www.youtube.com/channel/UCTYBVKrnJdeuxPLwnjDejfw

Pinterest: https://www.pinterest.com/tutburyassociatesltd/

Twitter: https://twitter.com/TutburyAssoc

LinkedIn: https://www.linkedin.com/company/13728219/admin/overview/

 

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