27 Sep 2011

Legislation on KiwiSaver changes passes first hurdle

8:26 pm on 27 September 2011

The Labour Party has voted for legislation containing changes to KiwiSaver entitlements.

The new provisions are in an omnibus tax bill that also includes a requirement for businesses to impose the goods and services tax on fees they charge people for late payment of bills.

At the Budget in May the Government said the changes to the workplace savings scheme were needed to ensure its future.

Changes to the scheme include employer contributions no longer being tax-free, which means less money going into savers' accounts.

Employers and employees will have to contribute more each year - up from 2% to 3%.

The bill passed its first reading by 110 votes to 10.