Whilst it’s actually been a few years since the last range of significant tax changes to impact savings and bank deposits (PIE tax regime), it doesn’t feel that long ago that we were explaining to customers the benefits PIE offered them. It’s time once again to start looking at the proposed tax changes and getting our collective heads around the implications and benefits.
There are two key tax developments in 2010.
On April 1st there will be changes applied to Resident Withholding Tax (RWT) and Prescribed Investor Rates (PIR) which will affect individuals, trusts and companies. Please visit our FAQ page to get a clearer understanding of what the changes will mean for you.
The other changes are not as clear at this point in time. As we know the government plans to change the tax system so as to address some of the perceived structural deficiencies, however we have to wait until the Budget is read on May 20th. The question, in terms of savings and deposits, is what will happen to the tax benefits offered by the PIE deposit products such as our Cash Advantage Fund? If the top tax rate drops from 38% to 33%, which appears to be the common expectation, what does that mean for people who use these products. At it’s simplest does it mean a migration back to the traditional On Call and Term Deposit products? Let’s see what happens on the 20th of May, and we’ll keep you informed.
Over the past twelve months our customers have been much more active in our Managed Funds offering, and we’ve been mirroring this increased interest in the enhancements we’ve made – “New to Managed Funds” Webinar, video interviews with our Fund managers, expanded performance data etc
I’m really pleased to announce the next stage in these enhancements with the addition of Fisher Funds to our range of funds. Fisher Funds are a well respected and successful fund manager here in NZ, and as part of our ongoing review of our range of funds we are very pleased to add 3 of their funds to our offering. Look out for your invitation to take part in a webinar with Carmel Fisher of Fisher Funds.
As Benjamin Franklin once said “In this world nothing can be said to be certain, except death and taxes” – looks like we’ll continue to once again take a great deal of interest in the latter over the coming weeks.