The Shareholders Association has raised serious concerns about the affect of Labour's proposed capital gains tax on retirement schemes, warning it could wipe tens of thousands of dollars from some KiwiSaver funds.
Currently, managed funds, including KiwiSaver, do not pay a capital gains tax on share trading of all New Zealand and most Australian-listed equities.
But the association says Labour has made it clear in a written response to its queries that this exemption would be lifted and a 15 per cent tax would apply.
Chairman John Hawkins says the tax would have a compounding effect on investments.
Mr Hawkins says he raised the matter because he was concerned that Labour had not been clear about the tax on KiwiSaver.
The Government scaled back Government contributions to KiwiSaver in May's Budget.
