Search
Close this search box.
Search
Close this search box.

NZ Taxpayers’ Union Annoyed About IRD’s KiwiSaver Delays

Written by

The New Zealand Taxpayers’ Union is particularly annoyed regarding the recent delays in transferring of KiwiSaver contributions to fund managers.

Being, in their words, a union formed to “stand up for hardworking New Zealand taxpayers”, the New Zealand Taxpayers’ Union believes that the delays in transferring contributions “undermines” KiwiSaver.

News over the past few weeks has shown that people have waited more than six months for their money to be transferred from the IRD to their fund manager. This has caused some to believe that those affected should be compensated given that people’s money would have been sitting with the IRD over this long period, not accruing returns. Unfortunately for these people, such a decision will need cabinet approval before this can be done.

The reason for the delays was because of the change in technology systems at IRD in April. 

An Official Information Act request from the NZ Herald showed that “274,000 customers had to wait for a collective $28.6 million” of contributions to be transferred to KiwiSaver providers. However, $3 million has still not been transferred to the appropriate KiwiSaver accounts

IRD external relationships leader, Meade Perrin, says this is to make sure that the right amount of money is being transferred into each KiwiSaver account. Perrin has apologised for these delays, which she called “unacceptable”. 

Nonetheless, the New Zealand Taxpayers’ Union says that the bosses responsible for these delays should be sacked.

The union’s spokesperson, Louis Houlbrooke, states in a press release that someone must “take the fall” at Inland Revenue to illustrate to other managers that “poor performance” will not be accepted.

Houlbrooke adds that for someone that does not receive $100 of interest due to this delay, they might lose out on $4,000, or more, in compound interest after 40 years. It is important to note, however, that Houlbrooke would likely have meant $4,000 or more in returns as opposed to compound interest (the difference between interest and returns will be covered in a future National Capital article).

Houlbrooke says that those affected will ask themselves why they should use KiwiSaver when they could just put their money into a managed fund themselves. 

What's the reason not to get advice on you KiwiSaver account? Let National Capital help.

You may also like

It’s time for your annual KiwiSaver Health Check

The Financial Markets Authority (FMA) recently released a statement reminding Kiwis that now is a good time for your annual

Balancing Your KiwiSaver: Mixing Ethics with Smart Money Moves

Balancing your KiwiSaver ethically and financially involves a lot of consideration to find a middle ground.

Baby Boomers Tapping into KiwiSaver Savings: Implications and Trends

We research what's causing the sudden rise in baby boomers withdrawing their KiwiSaver savings and how this is due to

Can employees opt out of KiwiSaver?

Opt out of KiwiSaver within 2-8 weeks using the KS10 form. Employers assist, late opt-outs may be considered up to

How is KiwiSaver treated in divorce?

Navigate KiwiSaver in NZ divorces. Learn about the 50:50 split, prenuptial options, and valuation for fair asset distribution. Legal guidance

ASB Bank Launches New Aggressive KiwiSaver Fund to Meet Growing Investor Demand

Discover ASB Bank's Aggressive KiwiSaver Fund for high-growth needs. Feeling lost in the investment maze? Navigate with ease using National