The tax rate you pay is called a PIR (prescribed investor rate). It can be 10.5%, 17.5%, or 28%.
If you don’t set your own tax rate, your KiwiSaver provider will automatically charge you 28% tax. If this isn’t right, you will pay more tax than you have to – and you won’t be able to get that money back.
If you earned less than $48,000 in both of the last two years you could be paying too much tax on your KiwiSaver account.
Speak to your provider or go to Inland Revenue’s website to learn more.
Find out what tax rate you’re on and if it’s wrong, let your provider know. You can usually change your PIR online.Next