by Rob Hosking
The 4% minimum threshold for contributions is too high, he told Parliament.
“That is a real problem for those on low incomes, and particularly for low-income working families, and we note here that for a young family with the breadwinner on a minimum wage, that will mean a drop in wages which they simply cannot afford.
“We note that at 4%, the bill also makes it impossible for beneficiaries to join the scheme, and given that unemployment for Maori is three times higher than for the general population, Maori will be doubly penalised.”
The party also says the age at which people can draw down KiwiSaver – 65 – discriminates against Maori because Maori die earlier.
The Maori Party also believes the first home buyer $5000 available to people who join KiwiSaver is too small.
“With the continuing rise in house prices, it is unrealistic for a family on a weekly income of $290, to service a $200,000 mortgage.”
The Maori Party’s chief of staff, Harry Walker, told Good Returns the party’s position has not changed since the select committee hearings on the legislation.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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