KiwiSaver and your Prescribed Investor Rate (PIR)
If you’re in KiwiSaver you will have recently been asked by your scheme provider to confirm your ‘Prescribed Investor rate’ (PIR).
KiwiSaver schemes are required to do this each year.
Your KiwiSaver is an investment that earns income. All income is subject to tax.
Your ‘PIR’ is the tax rate that is applied to the income of your scheme.
The table of rates they ask you to look at is confusing but I’m told the format is prescribed by the IRD and can’t be changed.
If I enrolled you in KiwiSaver personally, your PIR is unlikely to be wrong, unless you have had a change in your pay.
So, here’s a simple way to check your PIR;
If your annual earnings* from salary and wages is under $14,500 – your PIR is 10.5%
If your annual earnings* from salary and wages is under $48,000 – your PIR is 17.5%
If your annual earnings* from salary and wages is over $48,000 – your PIR is 28%
* gross annual earnings before tax and deductions
If you’re still unsure, you are welcome to ask me to help.
If you have a sizable income from investments you need to contact me to verify the correct PIR.
Hope this helps. Best wishes
Mike Bennett
Leave a Reply