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Posts Tagged ‘Commission for Financial Literacy and Retirement Income’

Letter to the Editor: National squanders our super fund!

13 December 2013 2 comments

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government urged to scrap tax on super fund - 13.12.13

Source

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FROM:     “f.macskasy”
SUBJECT: Letters to the editor
DATE:     Fri, 13 Dec 2013 13:46:03 +1300
TO:     Dominion Post <letters@dompost.co.nz>

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The Editor
Dominion Post

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The Commission for Financial Literacy and Retirement Income is calling for tax-free status for the NZ Superannuation Fund (aka “Cullen Fund”) set up by the previous Labour Government to fund baby boomer’ retirement.

Investment contributions were “suspended” by the incoming National Government in May 2009, costing us an estimated $40 billion in lost investment returns by 2040, according to investment analyst, Bernard Hickey.

Worse still, National has taken $3 billion in tax from the Superannuation Fund.

Government accounts have been in dire straits  since the 2009 and 2010 tax cuts, with at least $4 billion lost in revenue. This has forced National to borrow heavily from overseas and partial asset sales to fund the revenue short-fall.

All so the Nats could fund tax cuts (mostly for top income earners) we could ill afford.

Leeching $3 billion from the NZ Super Fund should be seen in the same light; scrambling by National to make up for the drop in tax revenue.

This is how National presents itself as a “prudent fiscal manager of the economy”; by making economic decisions for short-term benefit (for a select few) at the expense of long-term planning (for the majority).

As always, it will be up to our children to pay for this mess.

Frank Macskasy

(Address and phone number supplied)

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Previous related blogposts

National guts Kiwisaver

Authors of our own mis-fortune?

Regret at dumping compulsory super – only 37 years too late

References

Beehive: New Zealand Super Fund – fact sheet

Interest.co.nz: Bernard Hickey says the National Govt’s decision to suspend contributions to the NZ Super Fund will have cost about NZ$40 bln in lost investment returns by 2040

Radio NZ: Government urged to scrap tax on super fund

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