The savings policies of the eight parties in Parliament are compared in the table below.
The Herald is covering all the major policy areas in a series running throughout the election campaign.
| Party | General Approach | Employer Contribution | Taxpayer Contribution | Housing |
|---|---|---|---|---|
| Labour | KiwiSaver scheme to encourage saving with automatic enrolment when you start a new job, voluntary opt-out, savings locked in until age 65 unless withdrawn for first house. Employees can save at 4 or 8% of gross income, others (e.g. self-employed, children) can save at any rate agreed with their scheme providers. | Compulsory contributions of 1% of employee's gross income from April 2008, 2% from 2009, 3% from 2010, 4 % from 2011. | $1000 kickstart plus matching the saver's contributions up to $20/week. Also a tax credit for employers matching their contributions for each employee up to $20/week. | All savings except taxpayer contributions can be withdrawn after three years to help pay a deposit on a first home. Government will also pay $1000 for each year of saving up to $5000 per person ($10,000 per couple). |
| National | Keep KiwiSaver with automatic enrolment, voluntary opt-out and lock-in until age 65 except to buy first house. Employees can save at 2, 4 or 8% of gross income, others can save at any rate agreed with their scheme providers. | Compulsory contributions of 1% of employee's gross income from April 2008, 2% from 2009, maybe 3% some time in the future. | $1000 kickstart, plus: matching employee's contributions up to the lower of either 2% of gross income or $20/wk. Up to $20/wk for the rest. No tax credit for employers. | As for Labour, except the Government contribution of $1000/year up to $5000 would be available for every year that someone saves at least 2% of their income. Under Labour the requirement is 4%. |
| NZ First | Keep KiwiSaver with employee savings rates of 4 and 8% and gradually combine it with NZ Super in a compulsory saving scheme with individual accounts. | Raise to 5% when economic conditions permit, to bring total employee and employer contributions to 9%, matching employer contributions in Australia. | As for Labour. | As for Labour. |
| Greens | Support Labour's KiwiSaver with automatic enrolment, voluntary opt-out and lock-in until age 65 except to buy first house. Also support National's proposal to let employees save at 2, 4 or 8% of gross income, with others saving at any rate agreed with their scheme providers. | Support Labour policy of 1% of employee's gross income from April 2008, 2% from 2009, 3% from 2010, 4% from 2011. | As for Labour. | As for Labour. |
| Maori Party | Supported Labour's KiwiSaver bill, but prefer something like Ngai Tahu's Whai Rawa savings scheme under which people can save from as little as $10 a year upwards and receive matching contributions from the Runanga depending on available funds - up to $200 this year. | Support Labour policy of 1% of employee's gross income from April 2008, 2% from 2009, 3% from 2010, 4% from 2011. | As for Labour. | As for Labour. |
| United Future | Make KiwiSaver compulsory at 4% of income for all income earners as soon as it reaches about 1 million members. Combine it with NZ Super in 20 or 30 years time, creating individualised retirement accounts with a state top-up for low-income earners. | Support Labour policy of 1% of employee's gross income from April 2008, 2% from 2009, 3% from 2010, 4% from 2011. | As for Labour. | Gradually replace both KiwiSaver and NZ Super with a new scheme where savers aged 18 to 65 pay in $30.80 a week, employers contribute $15.40 and taxpayers $30.80/week, a total of $4000/year, yielding a capital sum of about $850,000 each in real terms after 47 years. |
| Act | Key to sustainable tax reductions is getting government expenditure under control. Cap growth in expenditure to rate of inflation. Abolish 39c tax rate. Favour first $5000 or $10,000 earned being tax free. Favour flat tax rate at as low a level as possible. Against research and development tax credits. | $15.40 a week for each employee. | Tax credit of $30.80 a week for each saver plus top-up for lowincome earners who can't afford to pay $30.80 a week. | No policy but Rodney Hide opposes withdrawal of funds to buy a home because that would reduce money available at retirement. |
| Progressive | Support existing KiwiSaver scheme, as for Labour. | Support Labour policy of 1% of employee's gross income from April 2008, 2% from 2009, 3% from 2010, 4% from 2011. | As for Labour. | As for Labour. |
