- Sorted life
- Sorted articles
- Changes from 1 April 2008
- Retirement saving
- Getting the right investment advice
- Get your KiwiSaver decision Sorted
- Finish 2008 better off than when you started
- This Xmas, make shopping with the plastic less drastic
- Calculating the cost of car loans
- Sorting out your finance options
- 8 rules for sorted investing
- Get sorted on mortgages and rising interest rates
- Teaching kids about money
- Help with KiwiSaver decision making
- Take the pulse of your personal finances with Sort Me
- Ten steps to getting Sorted for life
- Ten steps to getting Sorted for retirement
- What the OCR means to you
- Sorted Ads
- Sorted articles
- Kids & Money
- Students
- At work
- 60plus
Changes from 1 April 2008
As well as the usual annual changes to NZ Super and student loan rates, 1 April 2008 marks the introduction of compulsory employer contributions to KiwiSaver and new tax rates for PIEs (Portfolio Investment Entities). The government has also reduced the corporate tax rate from 33% to 30%.
Here’s a quick summary of how the key changes could affect you:
NZ Super
New maximum after tax rates for NZ Super (New Zealand Superannuation) apply from 1 April. For example, the Couple rate (where both partners qualify) has increased from $22,164 a year for both to $22,870. And the Single (living alone) rate has increased from $14,407 to $14,865.
Check out the new NZ Super rates. Or if you are nearing retirement and want to know more precisely the amount you would be entitled to, contact Work and Income on 0800 552 002.
Student loans
The repayment threshold (the amount you are allowed to earn before you have to start paying back your loan) has increased from $17,784 before tax to $18,148.
The student loan interest rate (for borrowers who go overseas for 184 or more consecutive days) has decreased, from 6.8% to 6.7%. No interest is charged on borrowers who live in New Zealand.
Our Student loan calculator has been updated to include the increased repayment threshold and reduced interest rate.
KiwiSaver
If you are an employee enrolled in KiwiSaver, your employer now has to contribute to your savings as well. The minimum employer contribution starts at 1% of your gross salary from 1 April, rising to 4% on 1 April 2011.
You can work out how much this would be for you on our Quick KiwiSaver calculator.
PIEs
If you invest in a PIE (Portfolio Investment Entity) and are in the 39% tax bracket, from 1 April your PIE income will be taxed at 30% rather than 33%.
All KiwiSaver default schemes are PIEs, as are many other KiwiSaver schemes and non-KiwiSaver superannuation schemes. Find out more…
Published 1 April 2008
