Minimum contribution rates for exempt employers with complying superannuation funds

Submission

(Matter raised by officials)

Section 64(1) of the KiwiSaver Act 2006 concerning contribution rates should be amended to apply to exempt employers with complying superannuation funds.

Comment

The Taxation (Urgent Measures and Annual Rates) Act 2008 amended the contribution rate rules in section 64 of the KiwiSaver Act. It is not clear how the amended provision applies in relation to exempt employers with complying superannuation funds. In particular, the contribution rates in the amended section may not necessarily apply to employees of exempt employers who do not belong to KiwiSaver schemes. Officials consider that section 64 should be amended to ensure that the minimum contribution rates apply to exempt employers with complying superannuation funds.

Recommendation

That the submission be accepted.