ACT pledges removing tax on KiwiSaver earnings
The ACT Party in New Zealand has pledged to remove taxes on KiwiSaver earnings as part of its election campaign. The policy aims to encourage long-term savings through compound interest, though it would be funded by ending government contributions for some members.
Why it matters
This proposal represents a significant shift in national retirement savings policy, sparking debate over the effectiveness of tax incentives versus direct government contributions.
The ACT Party has promised to remove tax on KiwiSaver earnings.
Leader David Seymour has unveiled the policy during ACT's campaign launch in Auckland on Sunday.
He said it would allow people's returns to stay invested and generate savings for generations.
"Other parties want to force your money into KiwiSaver, then tax you," he said.
"ACT says it should be your choice, but if you save for the future we will let you get the full benefit of compounding returns instead of taxing you every step of the way."
Seymour said long-term investments benefit from the "magic" of compound interest.
"Interest on interest, year after year, grows your KiwiSaver balance exponentially," he said.
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