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Income from a retirement savings or superannuation scheme

If you were required to include an amount of income attributed by a portfolio investment entity (PIE) in your individual income tax return (IR3) and it's a:

  • superannuation fund, or
  • retirement savings scheme (eg KiwiSaver)

you can exclude it from your income for Working for Families Tax Credits (WfFTC) and student loans.

When to include income from a PIE in your tax return

You'd be required to include income from a PIE in your tax return if:

  • it was taxed using a prescribed investor rate (PIR) lower than your correct rate, or
  • you withdrew from the PIE and the tax wasn't calculated using the 0% PIR.
Example

Peter receives WfFTC payments for his two children and also has a student loan. He has an investment in a KiwiSaver scheme that is a PIE. The PIE attributes $700 income to Peter's investment account. Peter provided a PIR lower than his correct rate so is required to include the income in his IR3.

Peter doesn't have access to the funds (they're locked-in) so he can exclude the $700 from his income for WfFTC and student loans

Find out more about PIEs