ACT has put KiwiSaver taxation on the election agenda, promising to remove tax on investment earnings inside KiwiSaver accounts if it forms part of the next Government.
ACT leader David Seymour says the policy is designed to leave more investment returns inside KiwiSaver, allowing those savings to compound over a person’s working life rather than being reduced by tax.
The party says participation and contribution decisions should remain a matter of individual choice, contrasting its approach with proposals from other parties to increase KiwiSaver contributions.
Under ACT’s plan, the existing KiwiSaver Government Contribution would also end for members receiving employer contributions, with the party arguing the benefit would instead come through the new tax treatment of investment earnings.
ACT estimates a 20-year-old builder earning $60,000 could accumulate an additional $209,486 by age 65 under its modelling, while a 50-year-old office manager earning $80,000 could have an additional $20,878. Those figures are ACT campaign estimates and depend on assumptions about investment returns, tax rates and contributions over time.
The announcement fits within ACT’s broader 2026 election platform of reducing taxes and encouraging private saving and investment. The party has also campaigned on returning the Government books to surplus without introducing new taxes.
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