RIP Kiwibank

By now most Kiwibank customers will have had their email from CEO Paul Brock telling them he wanted them “to be the first to hear the big news”. Though most would have already read about it in their daily newspaper.

The big news is that the ACC investment fund and the National Superannuation Fund have bought a 47% stake in Kiwibank. Evidently Kiwibank customers are expected to be over the moon with this deal.

Sorry Mr Brock, don’t expect us to join the celebrations. Kiwibank as we know it has gone. Continue reading

What We Could Do With Our Superannuation Fund Today Instead of Squirrelling It Away

Our national superannuation fund will never completely cover annual superannuation payments. It will just provide a small top-up, eventually, maybe. The fund currently stands at $30.1 billion, but it could all disappear in a puff of smoke if there is another financial crash. Continue reading

Its Time To Bite The Bullet; If We Want National Superannuation, We Need Progressive Taxation

It seems like the Labour Party has fallen prey to the baby boomers’ panic over national superannuation with its announcement that it will raise the age of entitlement for superannuation to 67 years.

Baby boomers are now staring old age in the face, and with it loss of earnings from paid work, disability, and eventually the need to be taken care of – but by whom? Until the early 1980′s the top marginal tax rate was over 60%. It is now 33% and still the wealthy complain. Continue reading

Alliance tax plan helps 67% of Kiwis

The Alliance Party has released its tax plan as part of its alternative budget, calling for a major overhaul of New Zealand’s taxation system to assist low to middle income earners, and to pay for free education and a substantial boost for health spending including free doctor’s visits.

Alliance finance and taxation spokesperson Professor Jim Flynn says one of the key goals of the Alliance is to restore a fair tax system based on ability to pay.

“Under an Alliance Government, a total of $3.57 billion dollars extra will be paid by the top 33%, particularly those who earn over $100,000 per year, but we give tax relief to the bottom 67%. The break-even point will be $41,000, that is, a family with two wage-earners each making that amount will pay no more tax.”

Professor Flynn says the budget would see a new deal for pensioners and beneficiaries

“The first $10,000 of income would be exempt from tax. This applies to everyone, but it would most benefit those on low incomes. Adjustments will be made so that those on Government superannuation and benefits are included.”

The Alliance tax plan would also provide a massive boost for low income New Zealanders struggling to make ends meet, says Professor Flynn. Continue reading