Monday, July 20, 2009

Better to waltz with Matilda

The recent initiative brought home by Bill English which allows “lost” superannuation savings to be brought back to N.Z and stuck in Kiwi Saver accounts turns out to be an exercise in exchange risk and at best a bit of tidiness.

The applicable Australian tax rate on such funds is 15%. The NZ rate is 19% or 30% – why would you bother? Better to allow the Australians to use your money and pay you a better net of tax return.

Yet another reason to flatten that NZ tax rate.

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