What tax is payable?

Under current tax law:

  • Contribution tax is payable on employer contributions.
    Your employer will pay this to Inland Revenue, on top of the employer contributions.
  • Income tax is generally payable on investment returns earned on your savings. The trustee of your SSRSS scheme will deduct the tax from your investment based on your Prescribed Investor Rate (PIR).
  • Scheme benefits are generally paid to you free of tax, although fund withdrawal tax may be payable in certain circumstances on employer subsidy and salary sacrifice contributions, if you withdraw them early. (Ask your SSRSS scheme provider for more information on fund withdrawal tax.)

 

The three SSRSS schemes are Portfolio Investment Entities (PIEs).  This allows returns on your SSRSS scheme to be taxed at a PIR of 19.5% if you meet certain income criteria. Your PIR will otherwise be 30%.

For more information on PIEs and PIRs please visit www.ird.govt.nz/toii or your SSRSS provider's website:

AMP - How will the new investment tax rules work for you?

ASB - Calculate your Prescribed Investor Rate.

AXA - Tax Changes: PIE.

Calculator

Use the calculator below to work out your possible contributions:

(min 1.5%)

Annual contributions

$0.00

Fortnightly contributions

$0.00

Contact the scheme providers

  • AXA - 0800 277 473
  • AMP - 0800 275 267
  • ASB - 0800 272 738

Provider email addresses

Glossary terms

Employer subsidy
The contribution your employer makes to your retirement savings. Once you have received your employer subsidy it becomes part of your retirement savings and remains in your chosen SSRSS scheme until you become entitled to withdraw it.  
SSRSS scheme
One of the three State Sector Retirement Savings Schemes (AMP, ASB and AXA) established under agreements between the State Services Commissioner and AMP, ASB and AXA.
Trustee
The entity with the legal responsibility for managing your investment in an SSRSS scheme, in accordance with the rules of that SSRSS scheme.

More glossary terms