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Attention KiwiSaver Members: Stay Compliant with Your Correct PIR Tax Rate

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Attention KiwiSaver Members: Stay Compliant with Your Correct PIR Tax Rate

UPDATE

With the IRD’s new technological capabilities, they can now cross-check your PIR against your taxable earnings to catch any discrepancies or individuals trying to bend the rules. So, it’s crucial to ensure your PIR is correct to stay compliant and avoid any unwanted scrutiny.

Have you heard the recent news? The Inland Revenue Department (IRD) has stepped up its game with a technology update that enables them to check if your KiwiSaver account’s Prescribed Investor Rate (PIR) tax is accurate. It’s time to ensure you’re on the right PIR rate to avoid any potential issues with the IRD!

What is the PIR rate, you ask? Well, it’s the way the government taxes the earnings on your investments, including your KiwiSaver account. Just like you pay tax on any interest earned in your bank accounts or dividends from shares, the PIR tax rate applies to your KiwiSaver returns.

Choosing the correct PIR rate can have a significant impact on your KiwiSaver returns. By aligning your PIR with your income tax rate, you can optimise your after-tax earnings, leading to better long-term outcomes for your retirement savings. Not to mention, falling into the wrong category may result in discrepancies, penalties, or additional taxes owed

It can be a complex system, so if you’re uncertain about your PIR or how to determine the appropriate rate for your situation, no need to panic, I’m here to lend a helping hand. Let’s get you on the right track and ensure your KiwiSaver tax obligations are in order.

Mike Bennett AFA

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Mike Bennett

In 1985, after 7 years in the banking industry in NZ & London, Mike Bennett joined the Life Insurance Industry as an adviser. In 2001 he started “Acorn Insurance & Investment Ltd” with the key principle; “to satisfy the insurance and investment needs of New Zealanders with the best products and service possible”. To achieve the guiding principle of “best products and service” the “Acorn” uses various industry research tools to identify the best products and prices to meet our client’s needs. Acorn has agencies with most of New Zealand’s major insurance companies which means we are free to use whichever products best meet our client’s needs. Believing that if we get it right for our clients we will achieve win-win solutions. We also recognise that nearly all insurance solutions are a compromise between the benefits you’d like to have versus the premiums you’re prepared to pay – with this in mind we WON’T be trying to sell you more insurance than you need or want !!

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