The Savings Working Group (SWG) was established by the Government in August 2010 to provide a point of reference for the government as it develops its medium-term savings strategies, and to stimulate a public discussion on issues of national saving in the New Zealand economy, linking this discussion to investment and growth.
The Savings Working Group released an interim report on 16 December 2010 and submitted its final report in January 2011 (officially released on 1 February 2011).
Amoung the recommendations of the Savings Working Group were:
- recommendation that government pursue with urgency an increase in national saving of some 2% to 3% of GDP
- interest income and expenses be indexed at a notified standard rate for tax purposes that reflects the rate of inflation (e.g. ~2% per annum)
- soft compulsion to KiwiSaver, but that KiwiSaver membership remain voluntary at this time
- proposals to raise GST to 17.5% (along with compensating income tax and benefit changes)
Savings Working Group Articles
Removal of the employer superannuation contribution tax (ESCT) exemption on 1 April 2012 will mean less cash in your KiwiSaver account.