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The KiwiSaver savings initiative is governed by a number of acts and regulations.
The principal act is the KiwiSaver Act 2006. Other legislation affecting the KiwiSaver initiative includes:
Superannuation Schemes Act
For most purposes, KiwiSaver schemes are considered registered superannuation schemes under the Superannuation Schemes Act. Various provisions of the Superannuation Schemes Act apply to the KiwiSaver initiative.
The Securities Act applies to offers of securities to the public in relation to superannuation schemes. The KiwiSaver Act makes some changes to the way the Securities Act applies to KiwiSaver, to reflect how KiwiSaver works and is administered.
Financial Transactions Reporting Act
KiwiSaver schemes, apart from "default" KiwiSaver schemes, will be subject to the normal Financial Transactions Reporting Act obligations.
Default KiwiSaver schemes will not be subject to all the Act's normal obligations, particularly in the area of identifying new members. Under the KiwiSaver Act a scheme provider must still make reasonable efforts to verify identity at the time of the default allocation.
Income Tax Act
The Income Tax Act provides the rules on taxing income from investment through New Zealand portfolio investment entities (PIE) and offshore portfolio investment in shares.
This act, together with the Tax Administration Act 1994, lays out the rules for "pay as you earn" (PAYE) tax. This applies specifically in determining what is "salary or wages" in reference to calculating contributions.
Tax Administration Act
This act, together with the Income Tax Act 2007, lays out the rules for PAYE. This applies specifically in determining the way Inland Revenue collects contributions and details from employers and passes them on to scheme providers.
Investment Advisors (Disclosures) Act
This act requires the disclosure of certain information by people who give investment advice to the public or who receive money or properties from the public as intermediaries.
Taxation (KiwiSaver and Company Tax Rate Amendments) Act 2007
This gave effect to the:
- member tax credit, and
- requirement that all employer KiwiSaver contributions must be paid to Inland Revenue from 1 July 2007.
Taxation (KiwiSaver) Act
This gave effect to:
- the compulsory employer contribution and employer tax credit, and
- certain other remedial amendments.
Financial Markets Authority Act
The Financial Markets Authority Act 2011 establishes the Financial Markets Authority (FMA) and from 1 May 2011 the FMA will be responsible for the regulation of the financial sector and will, amongst other things, supervise the management of KiwiSaver schemes and monitor the practices of financial advisers.
KiwiSaver Budget Measures Act 2015
This gave effect to:
- the Government $1,000 kick-start contribution no longer being available for members joining on or after 2pm, 21 May 2015.