| Forum Home | ||||
| PC World Chat | ||||
| Thread ID: 81688 | 2007-08-03 21:40:00 | Tax Credits and Kiwi Saver | tims (10184) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 576256 | 2007-08-03 21:40:00 | I've read the Kiwi Saver web site and still don't understand the concept of tax credits. Is the maximum tax credit of $1,042.86 a year taken off your yearly gross income figure so you pay tax only on the new figure or is $1,042.86 added to your Kiwi Saver account directly? Or are both of the above wrong?:confused: :help: |
tims (10184) | ||
| 576257 | 2007-08-03 22:07:00 | The tax credit is paid direclty into your Kiwisaver account. [edit]Actually Mary Holm explains it well here: Every year, the government will contribute a ‘tax credit’ of $1,040 if you have contributed at least that much during the year, and you are over 18. If you’ve contributed less, the government will deposit the same amount as you contributed. The tax credits are badly named. You don't have to be paying tax to get them. They are really just gifts into your KiwiSaver account. - KiwiSaver: How to make it work for you (www.maryholm.com) |
Jen (38) | ||
| 576258 | 2007-08-03 22:37:00 | ...They are really just gifts into your KiwiSaver account. ... paid for by hard-working ordinary Kiwi tax payers, who may or may not be Kiwi Savers (many can't afford to lose another 4% from their already-squeezed pay-packets), many of whom would prefer to receive a similar amount to use to offset mortgage interest rate increases instead!! :annoyed: The government doesn't think we're smart enough to know how to spend our own money - so they do it for us... :groan: | johcar (6283) | ||
| 576259 | 2007-08-04 00:16:00 | The government doesn't think we're smart enough to know how to spend our own money - so they do it for us... :groan:Unfortunately that is the case for many. Lots of debt, no savings and cannot even start to manage money for the future. Bit of a catch-22 though; the ones in the lower economic group are the ones less likely to have savings in place, but also the ones less likely to afford 4% taken out of the pay as a way of enforced savings. | Jen (38) | ||
| 1 | |||||