ACT would scrap tax on KiwiSaver earnings and end government contributions
ACT said it would stop taxing KiwiSaver earnings and end government contributions (1News, interest.co.nz, Newstalk ZB live blog). Members whose employers contribute would get what ACT calls substantially greater tax relief inside their accounts. Today earnings in widely held funds are taxed at up to 28%. Reporters noted that KiwiSaver has been a hot topic this election, with Labour, National and NZ First all promising changes.
KiwiSaver holds the savings of most working New Zealanders, so changes to it affect retirement incomes and the Budget.
Check how much the government contribution adds to your balance each year before deciding who the change would help.
ACT says savers should keep more of their own returns.
Critics say dropping the contribution hurts low earners most.
The headline is a tax cut, but the trade is the government contribution. The full costing was not in the reports DailyDrop saw.
DailyDrop New Zealand edition No. 1 · Morning · MON., OCT. 5, 2026