The ACT party has announced plans to reduce taxes on KiwiSaver earnings and eliminate the government’s $260 annual contribution to retirement savings accounts. The proposal is part of the party’s campaign platform, which emphasizes providing New Zealanders with a better financial future.
The proposed changes would allow individuals to retain more of their investment returns within their KiwiSaver accounts. Currently, a portion of the earnings is subject to income tax. Under the new plan, this tax would be removed, increasing the amount of money available for retirement. The government’s annual contribution of $260 per eligible worker would also be abolished.
KiwiSaver is a government-backed retirement savings scheme that requires most workers to contribute a percentage of their income. The policy change comes as the ACT party seeks to attract voters by positioning itself as a pro-business and pro-economic growth party. The proposal has not yet been formally introduced into legislation, but it is part of the party’s broader strategy for the upcoming election.
The move follows growing public interest in personal financial control and tax efficiency. Previous government policies have focused on maintaining the current structure of KiwiSaver, with some adjustments to make it more accessible. The ACT’s proposal represents a shift toward a more market-driven approach to retirement savings.
