Mortgage diversion fixed dollar amount – application date

Clause 541

Submission

(67 – New Zealand Institute of Chartered Accountants)

Clause 541 should apply from 16 October 2008. There were serious problems in implementing the mortgage diversion facility, which resulted in the KiwiSaver Amendment Regulations (No 2) to address those issues. Those regulations had effect from 16 October 2008, and therefore the application date of clause 541 should be the same.

Comment

The current application date of 1 July 2008 does not give rise to any problems.

Recommendation

That the submission be declined.