About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Saturday, April 19th, 1:42PM
rss
Latest Headlines

Govt Creates Confusion Over Superfund

The Government is cooking the books to create confusion over whether Dr Cullen's flawed super scheme will pay out 10 cents or 25 cents in the dollar of future superannuation costs, National's Bill English said today.

Thursday, July 19th 2001, 6:57PM

"The fact is that, on average, Dr Cullen's scheme will pay out just 10 cents in the dollar of the cost of future superannuation. It is absurd for the Government to suggest that Dr Cullen's scheme will make future provisions secure, when 90 cents in the dollar will still need to be met by future taxpayers.

"Dr Cullen claims his proposal makes superannuation 100 percent certain. In fact, it leaves it 90 percent uncertain.

"Helen Clark and Michael Cullen are also both now claiming the scheme will pay out 25 cents in the dollar. This is a nonsense, which is not supported by Treasury or Budget documents.

"Treasury documents, and their official advice to the Finance Select Committee confirmed the 10 cent figure, with a peak contribution of 14 cents in 60 years time. There is no reference at all to 25c.

"The figures I have cited come directly from the Treasury model of the scheme which is posted at: http://www.treasury.govt.nz/release/super/

"It appears that Dr Cullen is using an accounting trick. He is double counting the tax proceeds from the fund.

"Treasury advised the select committee that the fund is not really generating any extra tax revenue at all. If the money was in taxpayers' pockets, instead of the fund, it would still generate the same amount of tax.

"The money generated from tax on the fund is going into the general taxation pool, not the fund. The tax on the fund's earnings is not tagged back to the fund or to super. It goes into the general pool along with income tax, tax on alcohol and GST.

"Of course Dr Cullen could tax the Superfund less, or even not tax it at all and that would increase the growth rate of the fund and enable it to contribute more than 10c in the dollar to superannuation. However, this would reverse his current policy and he can't have it both ways.

"The smoke and mirrors act he is trying to pull, coupled with the problems inherent in Dr Cullen's scheme, clearly indicate it hasn't been built tough or smart, and it won't prove durable," Bill English said.

« Incentives Needed For Private Pension SavingAMP & Good Returns launch superannuation website »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Spicers' restraint of trade draconian
    “Yes, a self employed contractor may be dealt with differently than a franchisee in regard to your point made where there...”
    3 days ago by Michael Donovan
  • Pricing chaos in home loan market
    “Why has New Zealand consistently have the highest interest rates in the western world? Why does areas outside of Auckland...”
    3 days ago by Richard
  • Financial literacy tools reach teachers
    “While there are fools and entrepreneurs, there will always be financial inequity. Everyone knows that hire purchase is expensive,...”
    3 days ago by Andy
  • Call for advisers to audit each other
    “Maybe a senior adviser would have good back ground knowledge of the audit requirements and not be a newbie in the audit game,...”
    3 days ago by Gerald Gates
  • Call for advisers to audit each other
    “Thank you Nigel for going into Bat once again for us. I am an AFA specializing in the Family Market, therefore mostly Presenting/Promoting...”
    3 days ago by Lyall Daines
Subscribe Now

News and information about KiwiSaver

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 6.49 5.69 6.29 6.40
AMP Home Loans $200k+ 6.39 5.59 5.99 6.30
AMP Home Loans LVR <80% - - 5.99 -
ANZ 5.99 5.85 6.49 6.85
ANZ LVR > 80 5.99 6.35 6.99 7.35
ANZ Special - - 5.95 -
ASB Bank 6.00 5.85 6.49 6.85
ASB Bank Special - - - -
BankDirect 6.00 5.85 6.49 6.85
BankDirect Special - - - -
BNZ - Classic - - 5.95 -
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.19 5.85 6.29 6.29
BNZ - Mortgage One 6.60 - - -
BNZ - Rapid Repay 6.19 - - -
BNZ - Std, FlyBuys 6.19 5.85 6.29 6.29
BNZ - TotalMoney 5.99 - - -
Credit Union Auckland 6.20 - - -
Credit Union Baywide 5.85 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Fidelity Life 5.70 5.40 6.00 -
Lender Flt 1yr 2yr 3yr
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 5.90 ▲5.60 ▲5.99 ▲6.35
HBS LVR > 80% - - - -
Heartland 5.95 6.25 6.50 7.10
Heretaunga Building Society 5.75 5.50 6.30 -
Housing NZ Corp 5.75 5.50 6.30 6.40
HSBC Premier 6.24 5.59 6.29 6.55
HSBC Premier LVR > 80% - - - -
HSBC Special - - 5.79 -
Lender Flt 1yr 2yr 3yr
Kiwibank 5.90 5.69 5.99 6.40
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 5.60 - - -
Kiwibank LVR > 80% - - 6.29 6.40
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.45 5.95 6.60 -
NZ Home Loans 6.10 5.69 6.29 6.60
Perpetual Trust 7.70 - - -
RESIMAC - lo doc 7.34 7.14 7.49 8.05
RESIMAC LVR < 80% 5.84 5.64 5.99 6.55
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 85% 6.84 6.64 6.99 7.55
RESIMAC LVR < 90% 7.84 7.64 7.99 8.55
SBS Bank 5.90 ▲5.60 ▲5.99 ▲6.35
SBS LVR < 80% - - - -
Silver Fern 5.95 6.10 6.55 7.05
Southern Cross 5.95 6.25 6.50 7.10
Sovereign 6.10 5.85 6.49 6.85
Sovereign Special - - - -
The Co-operative Bank 5.95 5.65 5.99 6.35
TSB Bank 6.04 5.40 5.99 6.40
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.74 5.85 5.95 6.85
Westpac - Capped rates - 6.19 6.69 -
Westpac - Offset 5.74 - - -
Median 6.00 5.85 6.29 6.85

Last updated: 15 April 2014 9:01am

News Quiz

Who delivered FMA's quarterly briefing in Auckland last week?

new chief executive Rob Everett

Head of Enforcement Belinda Moffat

Head of Compliance Monitoring Elaine Campbell,

Chairman Simon Allen

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com