Tet is the next battle Dr Cullen has chosen to take. The talk is that officials have given a thumbs down to the Tet. Further the superannuation industry looked for a general application of the regime. However Dr Cullen is suggesting that only new schemes that meet certain criteria will be entitled to the concession. This will create additional compliance costs, and will likely give rise to greater uncertainty in an area where certainty is required.
Further thought is required to arrive at a workable solution.
In relative terms we are low savers, in part this is caused by low earnings. Many families just do not earn enough to enable appropriate savings. Government policy must focus on increasing wealth. Greg Haddon is a specialist financial services tax partner in the Wellington offices of Deloitte.