Government to inject $1.2 billion into Super fund

3.45

Today's budget allowed for a $1.2 billion payment into the New Zealand Superannuation Fund.

Dr Cullen said budget figures showed that by 2005/06 the fund would have reached almost $9 billion.

He revealed he was considering two options for a new tax regime for employment-based superannuation schemes.

Employers' contributions are generally taxed at 33 per cent, irrespective of the employee's individual tax rate.

The options under review are:

* Matching the withholding tax paid by employers to the statutory marginal tax rate paid by the worker.

* Extending the six per cent concessional rate those earning over $60,000 a year have, to all income earners.

Dr Cullen said the books were "more than adequate to cover the transfer into the New Zealand Superannuation Fund.

He claimed the Government would be putting the country in a much stronger position for the future.

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