KiwiSaver Law Changes – Effective from 1st April of 2019 

On the 12th of March this year the new Taxation Bill passed its Third Reading in Parliament and will now take effect from the 1st of April this year.

 

The main news here is that the KiwiSaver rules are about to change.

 

The Taxation Bill passed will introduce the following key law changes:

Effective from the 1st of April 2019:

  • The introduction of new contribution rates of 6% and 10%.
  • The name change from “contribution holiday” to “savings suspension”, and its reduction from a maximum of five years to one year.

Effective from the 1st of July 2019:

  • The possibility for people over 65 to join KiwiSaver.
  • The removal of the lock-in period that required people over 60 who just joined the scheme to wait for five years before withdrawing their money.

 

To read more on the subject check out the CFCC’s (Commission for Financial Capability) coverage of the Kiwisaver Law Changes here.

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