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If you had to include any income from a portfolio investment entity (PIE) in your individual income tax return (IR3) and it's either a:

  • superannuation fund
  • retirement savings scheme (like KiwiSaver)

you can leave it out of your income for Working for Families and student loans.

When to include income from a PIE in your tax return

You need to include income from a PIE in your tax return if either:

  • it was taxed using a prescribed investor rate (PIR) that was too low 
  • you withdrew from the PIE and the tax was not calculated using the 0% PIR.

Income from portfolio investment entities (PIEs)

Example

Peter receives Working for Families payments for his 2 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.

He does not have access to the funds (they're locked-in) so he can exclude the $700 from his income for Working for Families and student loans.

He will need to complete an adjustment so the PIE income is left out of his Working for Families and student loan calculations.