Employers fine with changes foreshadowed for Kiwisaver

Business will be pleased with the Prime Minister’s basic plan outlined today aiming to increase the nation’s savings to lift economic growth, the Employers & Manufacturers Association says.

“We like the PM’s straightforward plan to channel increased government and private savings into more investment in productive equipment, R&D and the like, especially to grow exports,” said Alasdair Thompson, EMA’s chief executive.

“It will give business more confidence to invest for growth in our economy,” he said.

“Increased savings will require raising the minimum amounts going into Kiwisaver, and we look forward to hearing more detail on how and when those will come into play.

“Employers are happy that the minimum amounts will be going up; it won’t be a big issue as Kiwisaver contributions must be treated as part of employees’ total salary and wages, and the changes are to be phased in over time.

“The reasons for cutting back the tax credit presently allowed for Kiwisaver are easily understood.

“But its good to hear the PM’s reassurances the scheme is being kept largely intact for when our economic recovery allows for it to be ramped up once again.

“Nothing is being wiped, including Working for Families and student loans, though the tightening up on repayments prescribed for the latter is long overdue.”