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KiwiSaver MkV

Chapman Tripp says the Budget changes leave KiwiSaver intact, but with war wounds.

Thursday, May 19th 2011, 9:22PM

KiwiSaver as modified in these terms feels more intuitively sustainable, and from 1 April 2013 the changes made will leave employed KiwiSavers (at all income levels) only modestly worse off in terms of the overall employer and Government savings incentives.

KiwiSaver will clearly be a much more workplace-focused scheme if these changes proceed.  The only incentive that self-employed and non-employed KiwiSavers will now have after joining KiwiSaver will be the maximum $521 a year MTC.

But, overall, these changes leave KiwiSaver intact (with war wounds) from the perspective of members, employers and KiwiSaver scheme providers.

We also note with interest that the Budget refers approvingly to the Savings Working Group recommendation of a one-off auto-enrolment exercise in the future whereby all employed KiwiSavers who have not yet joined KiwiSaver are automatically enrolled (with opt-out entitlements) in one fell swoop. The Government intends discussing this recommendation with employers post-budget to "look at how that might be done without unnecessary compliance and administrative costs."

Disclosure relief for providers
The Taxation (Annual Rates and Budget Measures) Bill, which has already been introduced, includes transitional protection for KiwiSaver providers against securities law breaches.  This means that KiwiSaver schemes can remain open to new subscribers and will have a reasonable period to amend their offer documents.

The Financial Markets Authority has stated that in the meantime it expects KiwiSaver providers to take all practicable steps to ensure that potential investors are fully informed of the changes, including information on provider websites, through adviser networks and through investment statement supplements.

The Bill protects providers against non-compliance with any securities-related statute if it starts before 31 July 2011 and does not continue on or after that date, or if it relates to:

  • a prospectus registered before 27 May 2011, or
  • an investment statement dated before 27 May 2011.
« KiwiSaver changes make saving tougher

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Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.95 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 3.05 2.99 2.99
SBS Bank Special - 2.55 2.49 2.49
The Co-operative Bank - First Home Special - - - -
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.49 2.69 2.79
Median 4.55 2.94 2.99 2.80

Last updated: 23 October 2020 5:00am

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